Gold slumps below $ 1230 on French debate outcome-led risk-on

Dhwani Mehta FXStreet

Gold prices on Comex staged a sharp reversal in the Asian session, having dropped sharply from near three-week tops to surrender $ 1230 barrier.

Gold back below 5-DMA at $ 1230

Currently, gold drops -0.40% to $ 1228.85, having posted daily tops at $ 1235.15. Gold prices came under tremendous selling pressure in Asia, after the risk conditions witnessed a dramatic turnaround, following the reports of Macron winning the first French presidential debate, which calmed fears over a potential French exit from the European Union (EU).

Although losses remain capped amid a broadly weaker US dollar and negative Asian indices, while subdued trading activity around the treasury yields also keep the downside cushioned.

Next of note for the major remains the FOMC member Dudley’s speech and US current account data, which will have significant impact on the yellow metal.

Comex Gold Technical Levels

The metal has an immediate resistance at 1235.45 (3-week tops) and 1247.36 (200-DMA). Meanwhile, the support stands at 1223.92/24 (50 & 20-DMA) below which doors could open for 1216.09/1215 (10-DMA/ round figure).

1. R3 1243.53
2. R2 1239.53
3. R1 1236.71
PP 1232.71
1. S1 1229.89
2. S2 1225.89
3. S3 1223.07

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD stabilizes near 1.1800 as markets focus on geopolitics

EUR/USD stays defensive around 1.1800 in the second half of the day on Thursday. The US Dollar stabilizes, following the recent decline led by tariff uncertainty, capping the pair's upside. All eyes now remain on the US-Iran nuclear talks after ECB President Lagarde's testimony failed to impress Euro bulls.

GBP/USD holds above 1.3500, struggles to gain traction

GBP/USD rebound from session lows but stays below 1.3550 on Thursday. The cautious market stance helps the US Dollar stay resilient against its rivals and makes it difficult for the pair gather recovery momentum. Investors await headlines that will come out of the US-Iran nuclear talks.

Gold clings to small gains near $5,200 ahead of US-Iran talks

Gold trades marginally higher on the day above $5,150 on Thursday as investors refrain from taking large positions. The US and Iran will hold the next round of nuclear talks in Geneva on Thursday, outcome of which could have significant implications for risk perception.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.