• 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

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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trades above 34-month lows after US retail sales miss

EUR/USD is trading around 1.0850, above the lowest since April 2017. The US Control Group disappointed by staying flat in January. Consumer sentiment beat expectations. Germany reported a 0% growth in Q4 2019. 

EUR/USD News

GBP/USD ticks down after reshuffle-related rally

GBP/USD is trading closer to 1.30, consolidating its gains after UK PM Johnson nominated Sunak as Chancellor instead of Javid, potentially directing fiscal stimulus. Brexit concerns and coronavirus developments are in play.

GBP/USD News

US retail sales modestly higher in January, soft in the details

Consumers kept to their habits boosting purchases last month but the holiday season was slower than its initial reading giving the New Year a soft beginning.

Read more

WTI climbs to fresh two-week highs above $52

The barrel of West Texas Intermediate (WTI) fell below the $51 handle on Thursday but recovered a large portion of its losses to close the day at $51.50 on easing concerns over the impact of the coronavirus outbreak on the global energy demand. 

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures