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Gold slips back closer to overnight swing low, below $1415 level

  • The prevalent risk-on mood undermined the commodity’s safe-haven status.
  • Fed rate cut expectations/subdued USD demand does little to lend any support.
  • The downside seems limited amid US holiday and ahead of Friday’s NFP report.

Gold prices edged lower on Thursday and dropped back closer to the previous session swing low, around the $1413 region.

Tracking the overnight solid gains on Wall Street - with all the three major indices posting record closing highs, Asian stocks advanced on Thursday and turned out to be one of the key factors undermining the precious metal's relative safe-haven demand.

The incoming softer US economic data - Wednesday's ADP report and ISM non-manufacturing PMI being the latest, reinforced market expectations that the Fed will eventually move to cut interest rates this month and boosted investors' appetite for perceived riskier assets - like equities

However, a subdued US Dollar demand might extend some support to the dollar-denominated commodity. This coupled with the recent slump in the US Treasury bond yields to more than 2-1/2 year lows might further collaborate towards limiting the downside for the non-yielding yellow metal.

Hence, it would be prudent to wait for a strong follow-through selling before confirming that the commodity might have already topped out near the $1440 region and positioning for any further near-term corrective slide as the focus now shifts to Friday's closely watched US monthly jobs report (NFP).

Technical levels to watch

XAU/USD

Overview
Today last price1414.31
Today Daily Change-4.47
Today Daily Change %-0.32
Today daily open1418.78
 
Trends
Daily SMA201373.8
Daily SMA501322.39
Daily SMA1001312.06
Daily SMA2001281.68
Levels
Previous Daily High1436.2
Previous Daily Low1412.5
Previous Weekly High1438.66
Previous Weekly Low1399.33
Previous Monthly High1438.66
Previous Monthly Low1306.18
Daily Fibonacci 38.2%1421.55
Daily Fibonacci 61.8%1427.15
Daily Pivot Point S11408.78
Daily Pivot Point S21398.79
Daily Pivot Point S31385.08
Daily Pivot Point R11432.48
Daily Pivot Point R21446.19
Daily Pivot Point R31456.18

Author

Haresh Menghani

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

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