Gold slips to 11-day low as risk assets draw bids


  • Gold's price pullback continues amid risk-on action in the financial markets. 
  • Risk assets are drawing bids on continued easing of US-China tensions. 
  • Gold may find some love if China's trade data prints below estimates.

Gold continues to lose altitude amid increased demand for risk assets.

At press time, the yellow metal is trading at $1,537 per Oz, the lowest level since Jan. 3. Prices are currently down nearly 4.6% from the six-year high of $1,611 reached last week. 

Risk-on

The yellow metal is losing altitude amid the uptick in the risky assets. The futures on the S&P 500 are currently reporting a 0.10% gain, meaning the index is likely to open Tuesday on a positive, having hit fresh record highs on Monday. 

The Asian equities are also flashing green at press time with Japan's Nikkei index adding 171 points or 0.80%. 

The risk assets are drawing bids, possibly due to the continued easing of US-China trade tensions.

The US Treasury on Monday removed China’s designation as a currency manipulator, offering a major concession to the Chinese officials ahead of the signing of the phase-one trade deal on Wednesday. 

Focus on China data

While gold is on the defensive at press time, it may change course if the China trade data due at 03:00 GMT, misses expectations by a big margin, forcing investors to reassess the prospects of China and global growth rebound in 2020. 

A weaker-than-expected data could weigh over the risk assets, putting a bid under safe havens like gold. 

Technical levels

XAU/USD

Overview
Today last price 1537
Today Daily Change -10.56
Today Daily Change % -0.68
Today daily open 1548.76
 
Trends
Daily SMA20 1519.83
Daily SMA50 1488.54
Daily SMA100 1496.31
Daily SMA200 1432.29
 
Levels
Previous Daily High 1562
Previous Daily Low 1546.59
Previous Weekly High 1611.3
Previous Weekly Low 1540.3
Previous Monthly High 1525.1
Previous Monthly Low 1454.05
Daily Fibonacci 38.2% 1552.48
Daily Fibonacci 61.8% 1556.11
Daily Pivot Point S1 1542.9
Daily Pivot Point S2 1537.04
Daily Pivot Point S3 1527.49
Daily Pivot Point R1 1558.31
Daily Pivot Point R2 1567.86
Daily Pivot Point R3 1573.72

 

 

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


Latest Forex News

Editors’ Picks

Gold prices collapse to $1,910 as huge profit-taking kicks-in

Positioning squeeze has taken place as the bulls feeling the heat bail out in droves, triggering stop losses to the bottom of the abyss. Real rates have been on the incline since last week's Nonfarm Payrolls report which beat expectations.

Gold News

AUD/USD starts Wednesday trading at fresh weekly lows

The AUD/USD pair is trading at fresh weekly lows in the 0.7130 price zone, as the dollar accelerated its advance ahead of Wall Street’s close. Australian Q2 wages’ growth coming up next.

AUD/USD News

EUR/USD turns negative at the end of the day

The EUR/USD pair trades near 1.1730 on renewed demand for the dollar. Optimism about US economic growth led the way, despite the coronavirus pandemic continues to limit economic activity.

EUR/USD News

Price Prediction Bitcoin, Ethereum, Ripple: Euphoria warns of danger

From the crypto ecosystem, the current moment invites us to look for opportunities to balance the portfolio towards Bitcoin, which after giving up market dominance against Ethereum, shows technical patterns that are favorable to a recovery in the short term.

Read more

WTI erases majority of daily gains

Crude oil prices started the week on a strong footing and the barrel of West Texas Intermediate (WTI) gained more than 1% on Monday. With the market sentiment remaining upbeat on Tuesday, the WTI extended its rally and touched a daily high of $42.91 but struggled to preserve its bullish momentum. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures