Gold ticks higher, lacks follow-through

Gains some traction following the biggest single-day fall since September 25.
The prevalent cautious mood underpinned the commodity's safe-haven status.
US-China trade optimism might continue to keep a lid on any strong recovery.

Haresh Menghani FXStreet

Gold edged higher on Wednesday and recovered a part of the overnight sharp fall to three-week lows, albeit seemed struggling to capitalize on the attempted bounce.

A combination of negative forces exerted some heavy downward pressure on Tuesday and led to the precious metal's biggest single-day drop since September 25. The US Dollar remained well supported by growing optimism over a possible US-China trade deal later this month and was seen as one of the key factors weighing on dollar-denominated commodities – including Gold.

Upside seems limited

The already stronger USD got an additional boost following the release of better-than-expected US ISM Non-manufacturing PMI. This coupled with a strong upsurge in the US Treasury bond yields further aggravated the intraday bearish pressure surrounding the non-yielding yellow metal, taking along some short-term trading stops near the key $1500 psychological mark.

As investors digested the latest US-China trade news, the prevalent cautious mood around equity markets extended some support to the precious metal's perceived safe-haven status and helped gain some positive traction on Wednesday. However, the uptick lacked any strong bullish conviction and runs the risk of fizzling out rather quickly amid absent relevant market moving economic releases.

Technical levels to watch

XAU/USD

Overview
Today last price	1484.4
Today Daily Change	-0.47
Today Daily Change %	-0.03
Today daily open	1484.87

Trends
Daily SMA20	1495.2
Daily SMA50	1502.92
Daily SMA100	1474.16
Daily SMA200	1388.13

Levels
Previous Daily High	1510.7
Previous Daily Low	1479.55
Previous Weekly High	1515.38
Previous Weekly Low	1481.1
Previous Monthly High	1519.04
Previous Monthly Low	1455.5
Daily Fibonacci 38.2%	1491.45
Daily Fibonacci 61.8%	1498.8
Daily Pivot Point S1	1472.71
Daily Pivot Point S2	1460.56
Daily Pivot Point S3	1441.56
Daily Pivot Point R1	1503.86
Daily Pivot Point R2	1522.86
Daily Pivot Point R3	1535.01

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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