Gold trades at 2-week high on USD selling


Gold jumped to two-week high of $1237.94 in Asia on broad based USD selling. 

Nears trend line hurdle

The trend line sloping upwards from Jan 27 low and Mar 10 low is seen offering resistance around $1240 levels.  The metal was last seen trading around the session highs and looked set to test supply around the trend line resistance. 

The bullish move gathered pace after the news hit the wires that Trump's care bill has been rejected yet again by Republicans. The health care affair was largely seen as test of Trump’s legislative ability. The failure here means the task of pushing through tax reforms would be even more difficult. 

Consequently, the greenback has been offered across the board. The Dollar Index dropped to 84.74; the lowest level since September 2016. 

Gold Technical Levels

A break above the trend line hurdle of $124 would open doors for resistance at $1247 (100-DMA) and $12583.90 (June 23 high). On the downside, breach of support at $1232.50 (session low) could yield a re-test of $1229.59 (200-DMA). An end of the day close below the 200-DMA would signal the corrective rally has ended, in which case the support at $1217.63 (July 5) could be put to test again. 

  TREND INDEX OB/OS INDEX VOLATILY INDEX
15M Bullish Overbought High
1H Slightly Bullish Overbought Low
4H Bullish Overbought Expanding
1D Bullish Overbought Low
1W Bearish Oversold Low

 

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.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.2050 amid upbeat EZ PMIs, USD decline

EUR/USD is trading above 1.2050 after upbeat Eurozone Preliminary PMIs. The US dollar remains heavily offered across the board amid a mixed market mood, in the wake of Biden's plan for a tax hike. US PMIs awaited. 

EUR/USD News

GBP/USD holds gains below 1.3900 amid upbeat UK data

GBP/USD is consolidating gains below 1.3900, as the US dollar resumes decline after Biden's tax hike plan fuelled rally fades. The UK Retail Sales and PMIs beat expectations, offering support to the pound. 

GBP/USD News

Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD eases from tops, downside remains cushioned

Gold struggled to capitalize on its intraday positive move to the $1,790 region. A modest bounce in the equity markets, US bond yields exerted some pressure. The prevalent USD selling bias should help limit the downside for the commodity.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures