Gold slides to session low, below $1560 level

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.

Haresh Menghani FXStreet

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

XAU/USD

Overview
Today last price	1554.53
Today Daily Change	-4.25
Today Daily Change %	-0.27
Today daily open	1558.78

Trends
Daily SMA20	1544.99
Daily SMA50	1500.78
Daily SMA100	1497.64
Daily SMA200	1441.49

Levels
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

Author

Haresh Menghani

FXStreet

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

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