Gold slumps to $1,480 area on Brexit hopes

  • Risk-on flows dominate the markets in the American session on Tuesday.
  • Reports claim that sides are closing in on a Brexit deal.
  • 10-year United States Treasury bond yield adds 1%.

The troy ounce of the precious metal continued to weaken in USD terms in the American trading hours as markets cheered reports claiming that the European Union (EU) and the United Kingdom (UK) are closing in on a draft Brexit deal that could be announced before the end of the day on Tuesday. After slumping to a daily low of $1,477, the XAU/USD pair recovered modestly and was last seen trading at $1,482, losing more than $10, or 0.7% on a daily basis.

Eyes on Brexit developments

Citing two sources familiar with talks, Bloomberg said that the EU and the UK negotiators made progress in today's talks in Brussels and now were closer than ever before to reach a Brexit deal. Although a senior EU official said it would be "way too premature" to say that a deal was imminent, the market sentiment remained upbeat and made it difficult for safe-haven assets such as gold to find demand.

Reflecting the strong risk appetite, the 10-year United States (US) Treasury bond yield quickly erased all of its daily losses and was last up 1% on the day. Moreover, the UK's FTSE Index closed the day 1.2% higher and Wall Street's main indexes gained traction following a quiet start to the day.

On the other hand, the sharp upsurge witnessed in the GBP/USD pair following the latest Brexit developments weighed on the USD and allowed the pair to limit its losses for the time being. The US Dollar Index, which spent the majority of the day moving sideways above the 99.50 handle, was last seen at 98.30, losing 0.12% on the day.

Technical levels to watch for


Today last price 1481.5
Today Daily Change -11.69
Today Daily Change % -0.78
Today daily open 1493.19
Daily SMA20 1500.66
Daily SMA50 1507.26
Daily SMA100 1446.61
Daily SMA200 1371.61
Previous Daily High 1496.96
Previous Daily Low 1482.98
Previous Weekly High 1516.85
Previous Weekly Low 1474.2
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1491.62
Daily Fibonacci 61.8% 1488.32
Daily Pivot Point S1 1485.13
Daily Pivot Point S2 1477.07
Daily Pivot Point S3 1471.16
Daily Pivot Point R1 1499.11
Daily Pivot Point R2 1505.02
Daily Pivot Point R3 1513.08



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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 


GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.


Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News