- US-China trade tensions continue to benefit the commodity’s safe-haven status.
- Fed rate cut bets, weaker bond yields, subdued USD demand remained supportive.
- Technical buying on above $1248 area further accelerates the positive momentum.
Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.
The precious metal added to its recent strong gains, with a combination of supporting factors fueling the ongoing positive momentum for the third consecutive session on Friday.
Against the backdrop of growing concerns over a further escalation in trade tensions between the world's two largest economies, the precious metal has been attracting safe-haven flows.
This coupled with the fact that the Fed is likely to cut interest rates by the end of this year further benefitted the non-yielding yellow metal and collaborated to the ongoing positive momentum.
Moreover, the US Dollar remained on the defensive amid a weaker tone surrounding the US Treasury bond yields and remained supportive of the strong bid tone around the dollar-denominated commodity.
Meanwhile, possibilities of some heavy trading stops being triggered on a sustained move beyond the $1348 region (previous yearly high) seemed to be a key trigger behind the latest of a sudden spike.
Hence, it would be prudent to wait for a strong follow-through movement in order to confirm that the current up-move is backed by any genuine buying and marks a fresh near-term bullish breakout.
Technical levels to watch
|Today last price||1355.78|
|Today Daily Change||13.40|
|Today Daily Change %||1.00|
|Today daily open||1342.38|
|Previous Daily High||1343.2|
|Previous Daily Low||1332.48|
|Previous Weekly High||1348.12|
|Previous Weekly Low||1306.18|
|Previous Monthly High||1306.9|
|Previous Monthly Low||1266.35|
|Daily Fibonacci 38.2%||1339.1|
|Daily Fibonacci 61.8%||1336.58|
|Daily Pivot Point S1||1335.5|
|Daily Pivot Point S2||1328.63|
|Daily Pivot Point S3||1324.78|
|Daily Pivot Point R1||1346.22|
|Daily Pivot Point R2||1350.07|
|Daily Pivot Point R3||1356.94|
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.