Gold surrenders early gains to all-time highs, back around $1960 region


  • Sustained selling around the USD assisted gold to catch some fresh bids on the last day of the week.
  • A positive opening in the US equity markets prompted some profit-taking amid overbought conditions.

Gold reversed a major part of its early positive move to all-time highs and has now retreated to the lower end of its daily trading range, around the $1960 region.

Following the previous day's modest pullback and a subsequent rebound from the $1940 area, the precious metal managed to regain traction and touched a fresh record higher level of $1984. The uptick marked the tenth day of a positive move in the previous eleven and was sponsored by the heavily offered tone surrounding the US dollar, which tends to benefit the dollar-denominated commodity.

The USD remained depressed on the last day of the week fell to its lowest level since May 2018 amid worries that the ever-increasing coronavirus cases could undermine the US economic recovery. The greenback was further pressured by a more dovish statement by the Fed on Wednesday and the failure of the US lawmakers to reach an agreement on the next package of stimulus measures.

However, a modest pickup in the global risk sentiment – as depicted by indications of a positive opening in the US equity markets – undermined the precious metal's safe-haven status. This coupled with a goodish rebound in the US Treasury bond yields further collaborated towards capping gains for the non-yielding yellow metal, instead prompted traders to take some profits off the table.

Technical levels to watch

XAU/USD

Overview
Today last price 1963.59
Today Daily Change 7.04
Today Daily Change % 0.36
Today daily open 1956.55
 
Trends
Daily SMA20 1847.39
Daily SMA50 1780.35
Daily SMA100 1720.31
Daily SMA200 1627.33
 
Levels
Previous Daily High 1971.82
Previous Daily Low 1939.66
Previous Weekly High 1906.68
Previous Weekly Low 1805.86
Previous Monthly High 1785.91
Previous Monthly Low 1670.76
Daily Fibonacci 38.2% 1951.95
Daily Fibonacci 61.8% 1959.53
Daily Pivot Point S1 1940.2
Daily Pivot Point S2 1923.85
Daily Pivot Point S3 1908.04
Daily Pivot Point R1 1972.36
Daily Pivot Point R2 1988.17
Daily Pivot Point R3 2004.52

 

 

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