- Reviving safe-haven demand helped regain some positive traction on Wednesday.
- The prevalent USD buying interest/tempered Fed rate cut bets to cap further gains.
Gold prices edged higher through the early European session on Wednesday and recovered a part of the previous session's slide to near one-week lows.
The precious metal stalled its recent corrective slide from fresh multi-year tops and managed to find decent support near the $1414 region on Tuesday, with reviving safe-haven demand helping regain some positive traction on Wednesday.
The International Monetary Fund on Tuesday lowered its global growth forecast for the second time this year, which fueled concerns over the global economic outlook and turned out to be a key factor that underpinned the precious metal's safe-haven demand.
However, the latest optimism over a positive trade-related development, coupled with the ongoing US Dollar bullish run to multi-week lows might keep a lid on any strong follow-through up-move for the dollar-denominated commodity.
Moreover, the fact that investors continued scaling back expectations for an aggressive monetary easing by the Fed at its upcoming meeting on July 30-31 might further collaborate towards capping gains or driving flows away from the non-yielding yellow metal.
Hence, it will be prudent to wait for a sustained move beyond weekly tops - around the $1430 region, before traders again start positioning for the resumption of the prior bullish trend and a possible move back towards challenging multi-year tops.
Technical levels to watch
|Today last price||1423|
|Today Daily Change||5.28|
|Today Daily Change %||0.37|
|Today daily open||1417.72|
|Previous Daily High||1430.16|
|Previous Daily Low||1414.49|
|Previous Weekly High||1452.72|
|Previous Weekly Low||1400.2|
|Previous Monthly High||1438.66|
|Previous Monthly Low||1306.18|
|Daily Fibonacci 38.2%||1420.47|
|Daily Fibonacci 61.8%||1424.17|
|Daily Pivot Point S1||1411.42|
|Daily Pivot Point S2||1405.12|
|Daily Pivot Point S3||1395.76|
|Daily Pivot Point R1||1427.09|
|Daily Pivot Point R2||1436.46|
|Daily Pivot Point R3||1442.76|
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