|

Gold spikes to 4-week tops but fails to extend the momentum

   •  Hits 4-week tops on persistent USD selling bias/risk-off mood.
   •  December Fed rate hike expectations cap additional gains. 

Gold quickly reversed the US macro data-led bullish spike to 4-week tops but has still managed to hold in positive territory for the second consecutive session.

The yellow metal jumped to an intraday high near the $1290 region following the release of US economic reports on retail sales and inflation. The market seemed unimpressed by today's macro data, with persistent US Dollar weakness benefitting dollar-denominated commodities – like gold. 

   •  US: CPI for all items increases 0.1% in October as shelter index rises
   •  US: Retail and food services sales for Oct. 2017 were $486.6 billion, an increase of 0.2% from Sep.

The data, however, was also seen having little monetary policy implication. In fact, the probability for a December Fed rate hike move remains above 90%, according to the CME Group's FedWatch Tool, and eventually kept a lid on any follow through up-move for the non-yielding metal.

Meanwhile, the prevalent risk-off environment, as depicted by a sea of red across global equity markets, underpinned demand for traditional safe-haven assets and helped the precious metal to maintain positive bias through the early NA session.

Technical levels to watch

A follow-through momentum beyond $1290 level is likely to accelerate the up-move towards $1295 intermediate hurdle en-route the key $1300 handle. On the downside, any meaningful retracement below $1284 level is likely to find support near the $1280 level, which is closely followed by 100-day SMA support near the $1278 region.
 

Author

Haresh Menghani

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

More from Haresh Menghani
Share:

Editor's Picks

GBP/USD clings to gains near 1.3460

GBP/USD holds steady above 1.3450 on Monday but struggles to build bullish momentum. Markets continue to assess developments in the US-Iran conflict following the weekend hostilities, helping the Greenback remain resilient against its rivals. Attention will turn to the UK employment report on Tuesday.


EUR/USD drops to three-day lows; focus is on 1.1400

EUR/USD trades on the back foot for the third day in a row and approaches the key 1.1400 contention zone on Monday. The pair’s pullback comes amid persistent uncertainty surrounding the Middle East crisis and decent gains in the US Dollar. Later this week, attention will turn to the ECB’s interest rate decision.

Gold challenges $4,000 amid a modest decline

Gold comes under some mild downside pressure and trades just above the key $4,000 mark per troy ounce at the beginning of the week. Escalating military action in the Middle East provides some support to the safe-haven metal, although expectations of higher US interest rates bolster the US Dollar and keeps its under the microscope.

Ethereum remains fragile underneath the surface despite outperformance

Ethereum's outperformance over the past week shows it's gaining relative strength against other top cryptocurrencies, but under the surface, key metrics indicate its rise remains fragile. Between last week and Wednesday, ETH recorded double-digit gains, outperforming fellow crypto majors Bitcoin, XRP, and Solana, before the broader market began to correct on Thursday.

Ripple Price: XRP bears retail control despite increasing retail demand
Ripple (XRP) faces sustained selling pressure as bears maintain control on Monday. The remittance token has struggled to break above the $1.10 resistance since last Thursday, as risk sentiment weighs. Demand for XRP derivatives has gradually increased since last week, with the perpetual futures Open Interest (OI) averaging 2.4 billion XRP on Monday, up from 2.13 billion XRP the previous day.
US Dollar mid-year outlook: Exceptional currency, exceptional risks?
The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.