- Improving risk sentiment continues to weigh on the commodity’s safe-haven status.
- Positive US bond yields/a modest USD uptick further add to the prevalent selling bias.
- The downside is likely to remain limited amid speculations for a Fed rate cut in 2019.
Gold finally broke down of its Asian session consolidation phase and retested its immediate horizontal support near the $1325-24 region in the last hour.
The precious metal remained depressed for the second consecutive session on Tuesday and added to the overnight heavy losses - led by fading safe-haven demand amid encouraging trade-related development.
The US President Donald Trump suspended plans to impose tariffs on Mexico after the two countries reached an agreement on immigration and provided a strong boost to the global risk sentiment on Monday.
The yellow metal dropped to the mentioned support, albeit Trump's fresh threat to raise tariffs on imports from China extended some support and helped stage a late rebound during the US trading session.
The uptick, however, lacked any strong follow-through rather fizzled out quickly amid persistent improvement in the investors' appetite for riskier assets, as depicted by a positive mood around equity markets.
Meanwhile, the downside is likely to remain cushioned in the wake of firming market expectations that the Fed will eventually move to cut interest rates by the end of this year, which tends to benefit the non-yielding metal.
Hence, it would be prudent to wait for a strong follow-through selling before confirming that the commodity might have actually topped out in the near-term and positioning for any further near-term corrective fall.
Technical levels to watch
|Today last price||1326.08|
|Today Daily Change||-1.86|
|Today Daily Change %||-0.14|
|Today daily open||1327.94|
|Previous Daily High||1337.65|
|Previous Daily Low||1325.21|
|Previous Weekly High||1348.12|
|Previous Weekly Low||1306.18|
|Previous Monthly High||1306.9|
|Previous Monthly Low||1266.35|
|Daily Fibonacci 38.2%||1329.96|
|Daily Fibonacci 61.8%||1332.9|
|Daily Pivot Point S1||1322.89|
|Daily Pivot Point S2||1317.83|
|Daily Pivot Point S3||1310.45|
|Daily Pivot Point R1||1335.33|
|Daily Pivot Point R2||1342.71|
|Daily Pivot Point R3||1347.77|
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