• The global flight to safety provided a modest lift to the commodity on Monday.
  • Resurgent USD demand turned out to be the only factors capping further gains.
  • Global growth concerns/trade issues should help limit any meaningful slide.

Gold edged higher during the early European session on Tuesday and remained well within the striking distance of over two-week tops set in the previous session.
 
The precious metal added to last week's goodish recovery gains from over one-month lows and gained some follow-through positive traction on Monday amid reviving safe-haven demand. Against the backdrop of the recent escalation of geopolitical tensions in the Middle East, a raft of downbeat Euro-zone macro data on Monday fueled concerns about global economic growth and boosted demand for traditional safe-haven assets - including Gold.

Diverging forces failed to provide a fresh impetus

The global flight to safety was further reinforced by a fresh leg of a free-fall in the US Treasury bond yields, which provided an additional boost to the non-yielding yellow metal and remained supportive of the positive momentum. However, a strong pickup in the US Dollar demand turned out to be the only factor that kept a lid on any strong follow-through appreciating move for the dollar-denominated commodity - Gold.
 
With the greenback holding on to its overnight gains, uncertainty surrounding global trade issues continued lending some support and helped limit any meaningful pullback. In the latest trade-related development, the US-Japan trade talks ended without any solution to the US President Donald Trump's proposed tariffs on the $50 billion in cars and parts shipped by Japan to the US annually.
 
It, however, remains to be seen if bulls are able to capitalize on the recent positive move or the commodity meets with some supply at higher levels as market participants still await any signs of progress in the US-China trade negotiations. Later during the early North-American session, the US economic docket - highlighting the release of Conference Board's Confidence Index - might be looked upon for some short-term trading opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1522.12
Today Daily Change -0.23
Today Daily Change % -0.02
Today daily open 1522.35
 
Trends
Daily SMA20 1514.33
Daily SMA50 1486.21
Daily SMA100 1414.55
Daily SMA200 1354.42
 
Levels
Previous Daily High 1526.75
Previous Daily Low 1511.58
Previous Weekly High 1517.15
Previous Weekly Low 1484.56
Previous Monthly High 1554.63
Previous Monthly Low 1400.9
Daily Fibonacci 38.2% 1520.96
Daily Fibonacci 61.8% 1517.38
Daily Pivot Point S1 1513.71
Daily Pivot Point S2 1505.06
Daily Pivot Point S3 1498.54
Daily Pivot Point R1 1528.87
Daily Pivot Point R2 1535.39
Daily Pivot Point R3 1544.04

 

 

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