Gold trades with modest losses, around $1290 level amid US-China trade optimism

   •  The risk-on mood continues to dent the commodity’s perceived safe-haven status.
   •  Steady USD fails to lend any support; dovish Fed expectations to limit downside.

Gold prices slipped for the second consecutive session, albeit remained well within a broader trading range held over the past one week or so.

A report that the US is considering easing tariffs on Chinese products boosted investors' appetite for riskier assets and triggered a later rally in the US equity markets. This coupled with the market stance of a diminishing hard Brexit risk further dented the precious metal's relative safe-haven status. 

Meanwhile, the US Dollar remained support by Thursday's upbeat US economic data - initial jobless claims and Philly Fed manufacturing index and did little to lend any support to the dollar-denominated commodity. However, dovish Fed expectations might continue to limit the downside for the non-yielding yellow metal.

Summing it all, the combination of diverging forces might fail to provide any meaningful directional impetus amid absent relevant market moving economic releases, with any attempted up-move seems more likely to remain capped ahead of the key $1300 psychological mark in the near-term.

Technical levels to watch

XAU/USD

Overview:
    Today Last Price: 1290.16
    Today Daily change: -173 pips
    Today Daily change %: -0.134%
    Today Daily Open: 1291.89
Trends:
    Daily SMA20: 1282.63
    Daily SMA50: 1251.02
    Daily SMA100: 1232.26
    Daily SMA200: 1228.87
Levels:
    Previous Daily High: 1295.45
    Previous Daily Low: 1288.95
    Previous Weekly High: 1297.15
    Previous Weekly Low: 1279.35
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Daily Fibonacci 38.2%: 1291.43
    Daily Fibonacci 61.8%: 1292.97
    Daily Pivot Point S1: 1288.74
    Daily Pivot Point S2: 1285.6
    Daily Pivot Point S3: 1282.24
    Daily Pivot Point R1: 1295.24
    Daily Pivot Point R2: 1298.6
    Daily Pivot Point R3: 1301.74

 

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.