Gold stays below 50-DMA despite recent challenges to risk tone

Gold pauses two-day-old recovery, repeats fashion of pulling back from 50-DMA.
Doubts over US-China trade relations, hard Brexit concerns question the market’s previous risk-on.
US data, Fedspeak and trade/political headlines to offer fresh impulse.

Anil Panchal FXStreet

Gold remains under pressure while trading around $1,475 during Tuesday’s Asian session. The Bullion earlier benefited from the US Dollar (USD) weakness but fails to respond to the latest risk-off moves.

Chinese media is once again playing its role of doubting any strong trade relations between the US and China whereas news from UK politics raises fears of hard Brexit. Elsewhere, Moody’s negative outlook for 2020 global manufacturing precedes the latest doubts over China’s steel production as conveyed by the Fitch.

That said, news of the phase-one between the United States (US) and China, coupled with general election results from the United Kingdom (UK), triggered the recent risk-on. Further, the safe-haven also benefited from the greenback’s decline in recent days.

The USD dropped on Monday as downbeat figures of the NY Empire State Manufacturing Index raised concerns of the US economic strength. Also, the St. Louis Federal Reserve Bank President James Bullard recently said to MNI news that he will wait for the economic reaction of the latest policy decisions prior to taking sides on future actions by the US Federal Reserve (Fed).

The market’s risk sentiment seems to be on the back foot as the US 10-year treasury yields drop to 1.87% while S&P 500 Futures also weaken to 3,195 by the press time.

Traders will now look forward to the US economic calendar whereas keeping eyes on trade/political headlines.

Technical Analysis

50-Day Simple Moving Average (DMA), around $1,478.50, limits the immediate upside of the yellow metal while a three-week-old ascending trend line near $1,464 can act as nearby support.

Additional important levels

Overview
Today last price	1475.22
Today Daily Change	-1.22
Today Daily Change %	-0.08%
Today daily open	1476.44

Trends
Daily SMA20	1467.03
Daily SMA50	1479.11
Daily SMA100	1490.25
Daily SMA200	1410.45

Levels
Previous Daily High	1479.8
Previous Daily Low	1473.28
Previous Weekly High	1486.58
Previous Weekly Low	1458.82
Previous Monthly High	1515.38
Previous Monthly Low	1445.8
Daily Fibonacci 38.2%	1477.31
Daily Fibonacci 61.8%	1475.77
Daily Pivot Point S1	1473.22
Daily Pivot Point S2	1469.99
Daily Pivot Point S3	1466.7
Daily Pivot Point R1	1479.74
Daily Pivot Point R2	1483.03
Daily Pivot Point R3	1486.26

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.