• Optimism over US-China trade talks weighs on traditional safe-haven assets.
• The positive tone around the US bond yields further collaborates towards capping.
• A subdued USD demand turns out to be the only factor lending some support.
Gold struggled to build on the overnight goodish up-move from closer to two-week lows and seesawed between tepid gains/minor losses through the early European session on Wednesday.
Against the backdrop of growing concerns over slowing global growth, resurfacing trade tensions further dampened investors' risk-appetite and boosted the precious metal's traditional safe-haven status on Tuesday.
News reports on Tuesday suggested that the US has turned down an offer of a preparatory trade meeting with Chinese counterparts due to outstanding disagreements over the enforcement of intellectual property rules.
However, a combination of diverging factors failed to provide any fresh impetus and kept a lid on any follow-through up-move for the commodity, leading to a subdued/range-bound price action.
White House economic advisor Larry Kudlow denied the report about the US cancelling a trade planning, which coupled with an uptick in the US Treasury bond yields dampened demand for the non-yielding yellow-metal.
Meanwhile, the US Dollar failed to preserve/build on the overnight uptick and turned out to be the only factor lending some support/limiting any meaningful downside for the dollar-denominated commodity.
In absence of any major market moving economic releases from the US, broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the commodity's move on Wednesday.
Technical levels to watch
XAU/USD
Overview:
Today Last Price: 1285.76
Today Daily change %: 0.10%
Today Daily Open: 1284.5
Trends:
Daily SMA20: 1284.95
Daily SMA50: 1255.59
Daily SMA100: 1234.62
Daily SMA200: 1228.59
Levels:
Previous Daily High: 1285.65
Previous Daily Low: 1277.5
Previous Weekly High: 1295.9
Previous Weekly Low: 1276.2
Previous Monthly High: 1284.7
Previous Monthly Low: 1221.39
Daily Fibonacci 38.2%: 1282.54
Daily Fibonacci 61.8%: 1280.61
Daily Pivot Point S1: 1279.45
Daily Pivot Point S2: 1274.4
Daily Pivot Point S3: 1271.3
Daily Pivot Point R1: 1287.6
Daily Pivot Point R2: 1290.7
Daily Pivot Point R3: 1295.75
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.