Gold sits at multi-day lows, below $1340 ahead of US GDP
• Resurgent USD demand continues exerting downward pressure.
• Risk-off mood/falling US bond yields do little to lend any support.
• Traders eye final US GDP growth figures for short-term impetus.
Gold maintained its offered tone for the second consecutive session and is currently placed at fresh weekly lows ahead of the final US GDP print.
A strong US Dollar recovery, triggered by easing global trade war fears and further boosted by positive news over the issue of denuclearization in the Korean Peninsula, has been one of the key factors weighing heavily on dollar-denominated commodities - like Gold.
The precious metal extended overnight retracement slide and has now fallen around 1.5% from near 6-week tops touched in the previous session. Even a fresh wave of global risk aversion trade, reinforced by the ongoing slide in the US Treasury bond yields, did little to revive the precious metal's safe-haven appeal and stall the corrective slide to the $1338-36 region.
Investors now look forward to the final US Q4 GDP growth figures, which if surprises on the upside should continue exerting downward pressure through the NY trading session on Wednesday.
Technical levels to watch
Immediate support is now pegged near $1332 area, below which the commodity seems to slide further towards the $1325-23 region. On the upside, momentum back above $1340 level might now confront resistance near the $1344-45 region, above which the pair could move back above $1350 level towards retesting $1353-54 supply zone.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
