Gold still limited by $1300 but holds some strength above $1292

  • Gold moves off $1300 as Wall Street turns higher and despite a weaker US dollar. 
  • US data mostly ignored by market participants, attention remains on trade issues. 

The yellow metal peaked after the beginning of the American session at $1300.70/oz but it was again rejected and pulled back. The move lower took placed amid a recovery in equity prices in Wall Street and despite a decline of the US dollar across the board. 

It dropped to $1294 and as of writing is trading at $1297, flat for the day. Price is consolidating at a higher level compared from two weeks ago when it traded at 2019 lows at $1266.

Data released today showed retail sales in the US declined by 0.2% in April, against expectations of a modest gain while industrial production dropped by 0.5%, also worse than market consensus. The date had no lasting impact. Reports about trade and the probability of a delay in tariffs imposed on European cars from the US helped risk appetite, but not gold

XAU/USD Levels to watch 

The rally from $1266 peaked on Monday at $1303 (1-month high). The area around $1300 has become a strong resistance level.  A firm break on top is needed in order to clear the way to more gains. Above the next resistance might be seen at $1310. 

On the flip side, $1292 is offering a strong support. Today during the European session the bearish tone eased after price bottomed at $1293. If gold slides below $1292/90, the short-term bullish bias would be invalidated.  

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: bearish strength pointing to lower lows for the year

The EUR/USD pair extended its decline Friday to finish the week sharply lower in the 1.1150 region. The American currency stood victorious on the back of persistent concerns about US-Sino trade tensions and encouraging local data.


GBP/USD remains little changed to 1.2730 as Brexit doubts supersede USD pullback

With the doubts over the UK PM May’s Brexit plan’s another failure at the parliament growing strong, the GBP/USD pair trades near 1.2730 during early Monday.


USD/JPY rose to intra-day high of 110.20 despite upbeat GDP data

USD/JPY rose to the intra-day high of 110.20 despite Japan’s Q1 2019 GDP data beat forecasts on early Monday. The reason for the rise could be a downward revision to previous figures. Japan’s first quarter (Q1) gross domestic product (GDP) beat 0.0% forecast .


Gold: Mid-August 2018 major-uptrend’s support line tested for third time this month

Technically, the price is below the 50 and 20 DMAs, dropping back from channel resistance with room to go on the RSI to the downside although meeting its mid-April support line.

Gold News

Bitcoin price update: BTC reclaims $7,000, recovery stalled

Bitcoin (BTC) has recovered from a scary flash crash that took it all the way down from $7,800 to as low as $6,512. The first digital coin lost about 16% of its value in a matter of hour with no particular reason .

Read more