Gold struggles to keep face above $1,500 psychological level

Gold was once again struggling last week to hold above water as US yields rise.
Bears look for a 50% mean reversion of the late June swing lows.

Ross J Burland FXStreet

Gold is steady in the open at the start of this week, consolidating pressures from above. The yellow metal has suffered on speculative paring as geopolitical risks subside a touch, enabling risk-on assets some airplay. Gold is currently sitting just below the psychological 1500 handle at $1,497.30 having fallen from the recent highs of $1,557.10.

The US Dollar holds in the 99 handle in the DXY and Gold was once again struggling last week to hold above water as US yields rise and despite lower stocks and risk-off sentiment. Gold for December delivery on Comex lost $8.80, or 0.6%, to settle at $1,506.40 an ounce; This was the lowest finish for a most-active contract since Sept. 19 while the contract dropped 0.6% for the week.

Gold levels

Bears look for a 50% mean reversion of the late June swing lows to recent highs around 1470 ahead of a run to the 19 July swing highs down at 1,452.93. Meanwhile, the 1500 psychological level is giving way, but in a correction higher, bulls can look to the 1535 resistance ahead of the 1,550 target which guards territories towards 1,590 as the 127.2% Fibo target.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.