- Fed rate cut hopes provide a strong boost to the non-yielding commodity.
- The upsurge seemed rather unaffected by a turnaround in the risk sentiment.
- A modest pickup in the USD demand also does little to hinder the momentum.
Gold built on its strong intraday positive momentum and spiked to fresh session tops, beyond the $1350 level during the early North-American session.
Having eased in the previous two sessions, the precious metal caught some aggressive bids on Tuesday and the up-move could be attributed to some repositioning trade ahead of the upcoming event risk - the latest FOMC monetary policy update.
Expectations that the US central bank will lay the groundwork for a rate cut by the end of this year were evident from the ongoing slump in the US Treasury bond yields, which turned out to be one of the key factors benefitting the non-yielding yellow metal.
Market bets for an eventual interest cut have been gradually increasing in the wake of the recent escalation in the US-China trade tensions and indications of the US economy losing steam, reinforced by weaker May monthly jobs report and softer inflation data.
The intraday positive momentum seemed rather unaffected by a solid intraday turnaround in the global risk sentiment, as depicted by a strong rally across European equity markets and which tends to dent the precious metal's relative safe-haven status.
Even a mildly positive tone surrounding the US Dollar, despite mixed US housing market data, also did little to dampen demand for the dollar-denominated commodity or stall the ongoing strong upsurge back closer to 14-month tops set last Friday.
Technical levels to watch
|Today last price||1352.82|
|Today Daily Change||13.07|
|Today Daily Change %||0.98|
|Today daily open||1339.75|
|Previous Daily High||1343.35|
|Previous Daily Low||1333|
|Previous Weekly High||1358.2|
|Previous Weekly Low||1319.99|
|Previous Monthly High||1306.9|
|Previous Monthly Low||1266.35|
|Daily Fibonacci 38.2%||1336.95|
|Daily Fibonacci 61.8%||1339.4|
|Daily Pivot Point S1||1334.05|
|Daily Pivot Point S2||1328.35|
|Daily Pivot Point S3||1323.7|
|Daily Pivot Point R1||1344.4|
|Daily Pivot Point R2||1349.05|
|Daily Pivot Point R3||1354.75|
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