- Gold drifts lower through the early European session on Friday.
- Improving risk sentiment, stronger US bond yields/USD weighed.
- The set-up warrants some caution for aggressive bearish traders.
Gold edged lower through the early European session on Friday and is currently placed near daily lows, around the $1558 region.
The precious metal continued with its struggle to capitalize on the attempted positive move and once again met with some fresh supply near the $1568 region on Thursday. The pullback extended through the early part of Friday's trading action and was fueled by a combination of negative factors.
Gold weighed down by a combination of factors
A slight recovery in the global risk sentiment, as depicted by a positive trading bias around equity markets, weighed on the precious metal's safe-haven status. The risk-on mood was evident from a pickup in the US Treasury bond yields, which further drove flows away from the non-yielding yellow metal.
Adding to this, the prevailing buying interest surrounding the US dollar also played its part in undermining demand for the dollar-denominated commodity. Despite the downtick, the commodity remained well within this week's broader trading range, warranting some caution for aggressive bearish traders.
Moving ahead, market participants now look forward to Friday's US economic docket, highlighting the release of the flash version of the US Manufacturing and Services PMI, which might provide a fresh impetus and produce some short-term trading opportunities later during the early North-American session.
Technical levels to watch
|Today last price||1554.53|
|Today Daily Change||-4.25|
|Today Daily Change %||-0.27|
|Today daily open||1558.78|
|Previous Daily High||1559.75|
|Previous Daily Low||1550.4|
|Previous Weekly High||1562|
|Previous Weekly Low||1536.35|
|Previous Monthly High||1525.1|
|Previous Monthly Low||1454.05|
|Daily Fibonacci 38.2%||1556.18|
|Daily Fibonacci 61.8%||1553.97|
|Daily Pivot Point S1||1552.87|
|Daily Pivot Point S2||1546.96|
|Daily Pivot Point S3||1543.52|
|Daily Pivot Point R1||1562.22|
|Daily Pivot Point R2||1565.66|
|Daily Pivot Point R3||1571.57|
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