Gold steadies near multi-month highs above $1325


  • The precious metal builds on last week's gains.
  • US Dollar Index extends slide on Monday.
  • Trading volume thins out in the NA session.

After closing the previous week $8 higher, the troy ounce of the precious metal started the week on a strong note and recorded steady gains to touch its highest level since April at $1327.50. However, the President's Day holiday in the U.S. weighed on the trading volume in the last hours and caused the XAU/USD pair to go enter a consolidation stage. As of writing, the pair was up 0.35% on the day at $1236.

Although the market sentiment seems to have improved amid rising hopes for this week's talks in Washington to lead to a final trade deal following President Trump's optimistic tweet over the weekend, the safe-haven gold didn't have a difficult time finding demand. The economic hardship the euro area is facing and the uncertainty surrounding Brexit negotiations are two of the main reasons why investors are still looking for a safer alternative.

Additionally, the broad-based selling pressure surrounding the greenback provided an additional boost to the pair. The US Dollar Index, which posted losses on Thursday and Friday last week, opened with a bearish gap and struggled to make a meaningful recovery in the absence of fundamental triggers. At the moment, the DXY is down 0.15% on a daily basis at 96.80.

Key technical levels

The initial resistance for the pair aligns at $1327.5 (daily high) ahead of $1332 (Apr. 25, 2018, high) and $1338 (Apr. 9, 2018, high). On the downside, supports could be seen at $1320 (daily low), $1313 (20-DMA) and $1300 (psychological level). Meanwhile, today's upsurge lifted the CCI indicator on the daily chart above the 100 level, suggesting that buyers are in control of the price action.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends gains to 1.1200 on sliding US yields, weak data

EUR/USD is trading close to 1.1200, in the wake of the European session as US yields continue falling. The European Parliament elections are in play. US durable goods fell short of expectations with -2.1%. 

EUR/USD News

GBP/USD off the highs as May announces stepping down on June 7th

GBP/USD is trading below 1.2700 after a quick rise to the upside as UK PM Theresa May announced she will step down on June 7th with Boris Johnson set to take over.

GBP/USD News

USD/JPY: consolidating losses below 110.00

Japanese yearly inflation rose by 0.9% in April, more than doubling the market's expectations. US Treasury yields bounced modestly, limiting the USD/JPY pair slump.

USD/JPY News

Gold: Bullish flag pattern spotted on 1-hourly chart

The lower end of the descending trend-channel coincides with 200-hour EMA support and should act as a key pivotal point for intraday traders. 

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: The market may surprise on the upside in the next few hours with BTC/USD topping $8,250

We reach the end of a week can be characterized as a week of transition. After the strongly bullish days of the beginning of the month, cryptos have reached critical levels of resistance...

Read more

Majors

Cryptocurrencies

Signatures