Gold sticks to gains above $1,500 on risk aversion

  • Trump administration is reportedly planning to limit Chinese capital inflows.
  • Wall Street's main indexes suffer heavy losses on Tuesday.
  • US Dollar Index floats above the 99 handle.

After losing more than $15 on Monday, the troy ounce of the precious metal recovered its losses on Tuesday as the dismal market mood allowed safe-havens to find demand. As of writing, the XAU/USD pair was trading at $1,505, up 0.8% on a daily basis.

Fading trade optimism triggers risk-off flows

The Chinese Foreign Ministry on Tuesday said that they are prepared to retaliate to the United States' (US) backlisting of the Chinese firms. Later in the day, citing a source with knowledge of the matter, Bloomberg reported that the Trump administration was planning to limit capital flows from China into the US government pension fund. These headlines caused investors to flee to safer assets and helped the pair retrace Monday's fall.

Reflecting the risk aversion, Wall Street's three main indexes are all losing möore than 1% on Tuesday.

On the other hand, the heavy selling pressure surrounding major European currencies, especially the British Pound, seems to be providing a boost to the Greenback to cap the pair's gains for the moment. As of writing, the US Dollar Index was up 0.1% on the day at 99.08.

Later in the session, markets will be paying close attention to the Federal Open Market Committee (FOMC) Chairman Powell's and Chicago Fed President Evans' remarks.

Technical levels to watch for


Today last price 1505.5
Today Daily Change 12.03
Today Daily Change % 0.81
Today daily open 1493.47
Daily SMA20 1499.74
Daily SMA50 1501.4
Daily SMA100 1435.72
Daily SMA200 1366.31
Previous Daily High 1509.86
Previous Daily Low 1488.32
Previous Weekly High 1519.04
Previous Weekly Low 1455.5
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1496.55
Daily Fibonacci 61.8% 1501.63
Daily Pivot Point S1 1484.58
Daily Pivot Point S2 1475.69
Daily Pivot Point S3 1463.05
Daily Pivot Point R1 1506.11
Daily Pivot Point R2 1518.75
Daily Pivot Point R3 1527.64



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

Editors’ Picks

EUR/USD is pressured under 1.09 ahead of German IFO data

EUR/USD is trading below 1.09 as ongoing SIno-American tensions boost the safe-haven US dollar. The German IFO figures for May are set to show a rebound from the lows. Coronavirus figures in Europe are declining.


GBP/USD is trading below 1.22 amid negative rates speculation

GBP/USD is trading below 1.22, as investors continue speculating about the BOE setting negative rates. PM Johnson is under pressure after his senior adviser violated the lockdown. The UK is on a bank holiday today.


Forex Today: Dollar in demand amid high Sino-American tensions, thin liquidity expected

The new week has kicked off with dollar strength as the US and China have kept tensions high. Thin liquidity and potential erratic movements may occur as the United States and United Kingdom are on holiday.

Read more

Gold down by $6 in Asia, weekly chart shows bullish trend exhaustion

Gold, a safe-haven asset, is flashing red at press time even though the growth-linked currencies like the Aussie dollar are struggling to gain altitude. Technical charts indicate scope for deeper declines in the short-term.

Gold News

USD/JPY keeps mild gains above previous resistance line, 200-HMA

USD/JPY bounces off an immediate support line to print a three-day winning streak. Thursday’s high appears on the bulls’ radar as immediate resistance. 107.00 could lure the bears below 200-HMA.