Gold slides to multi-day lows, below $1570

The safe-haven gold was undermined by improving risk sentiment.
A pickup in the US bond yields, strong USD added to the selling bias.

Haresh Menghani FXStreet

Gold edged lower for the second straight day and dropped to four-day lows, levels just below the $1570 region during the early European session on Tuesday.

The safe-haven commodity extended the previous session's retracement slide from near four-week tops and continues to be weighed down a strong recovery in the global risk sentiment.

Gold weighed down by a combination of factors

Efforts by the People’s Bank of China to cushion the economic impact from the outbreak of the deadly coronavirus and pledge to do more helped boost investors' appetite for perceived riskier assets.

This was evident from a positive mood around equity markets and reinforced by a goodish pickup in the US Treasury bond yields, which further drove flows away from the non-yielding yellow metal.

Meanwhile, the US dollar was being supported by Monday's stronger-than-expected rebound in the US ISM Manufacturing PMI and was also cited as a headwind for the dollar-denominated commodity.

It will now be interesting to see if the commodity is able to attract any buying interest at lower levels or continues with its corrective slide amid absent relevant market-moving US economic releases.

Technical levels to watch

XAU/USD

Overview
Today last price	1569.02
Today Daily Change	-7.39
Today Daily Change %	-0.47
Today daily open	1576.41

Trends
Daily SMA20	1564.43
Daily SMA50	1518.12
Daily SMA100	1503.74
Daily SMA200	1453.45

Levels
Previous Daily High	1594.01
Previous Daily Low	1569.33
Previous Weekly High	1589.79
Previous Weekly Low	1563.46
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1578.76
Daily Fibonacci 61.8%	1584.58
Daily Pivot Point S1	1565.82
Daily Pivot Point S2	1555.24
Daily Pivot Point S3	1541.14
Daily Pivot Point R1	1590.5
Daily Pivot Point R2	1604.6
Daily Pivot Point R3	1615.18

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD clings to moderate gains near 1.3400

GBP/USD enters a consolidation phase near 1.3400 after closing in positive territory on Tuesday. Weaker-than-expected June CPI readings from the US make it difficult for the US Dollar to gather strength and allow the pair to stay afloat. Fed Chair Warsh's second day of congressional testminoy and US producer inflation data could ramp up the market volatility in the American session.

EUR/USD holds steady above 1.1400 ahead of US data

EUR/USD stabilizes following Tuesday's rebound and trades in a narrow channel above 1.1400. The US Dollar (USD) struggles to stay resilient against its rivals following the soft inflation data but escalating tensions in the Middle East limit the pair's upside for now. Later in the day, June producer inflation data from the US will be watched closely by market participants.

Gold struggles to build on Tuesday's gains, retreats toward $4,000

After rising more than 1% on Tuesday, Gold loses its traction midweek and declines toward $4,000. While the USD stays on the back foot following the soft June inflation data, escalating tensions in the Middle East causes XAU/USD to stretch lower. Markets await PPI data from the US, while keeping a close eye on headlines surrounding the US-Iran conflict.

Bitcoin, Ethereum, and Ripple show tentative recovery as key technical levels hold

Bitcoin, Ethereum and Ripple trade with a mild positive bias on Wednesday as sentiment improves across the cryptocurrency market. BTC is testing its 50-day Exponential Moving Average, ETH has broken above a key resistance level at $1,800, while XRP has found support around a key level.

BoC set to keep interest rates steady for sixth consecutive meeting

The Bank of Canada is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. The central bank will announce its policy decision at 13:45 GM. This would be the sixth consecutive event with the central bank keeping its hand steady. The BoC left its policy rate unchanged at 2.25% last month, as widely anticipated.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.