- 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
|Today last price||1963.59|
|Today Daily Change||7.04|
|Today Daily Change %||0.36|
|Today daily open||1956.55|
|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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