Gold trades with modest losses, below $1500 mark ahead of Powell’s speech


  • Improving global risk sentiment dented the precious metal’s relative safe-haven status.
  • The USD remains supported by a pickup in the US bond yields and add to the selling bias.
  • Investors seemed reluctant to place aggressive bets ahead of Powell’s scheduled speech.

Gold traded with a mild negative bias through the mid-European session on Friday and is currently placed at the lower end of its weekly trading range, just above $1495 level.
 
A combination of factors kept exerting some downward pressure for the third consecutive session - also marking the commodity's fifth day of the downtick in the previous six - albeit bulls, so far, have managed to defend the $1493-92 horizontal support. The prevalent risk-on mood, as depicted by a positive trading mood around equity markets, was seen as one of the key factors weighing on the precious metal's perceived safe-haven status.

Risk-on mood/stronger USD exert some pressure

Improving global risk sentiment was further reinforced by a goodish pickup in the US Treasury bond yields, which eventually underpinned the US Dollar demand and further collaborated towards driving flows away from the dollar-denominated commodity. However, the downside remains cushioned as investors now seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of the Fed Chair Jerome Powell's scheduled speech.
 
Given that another rate cut in the September meeting is fully priced in, Powell's comments will be closely scrutinized to find out if the central bank is prepared to slash rates further. Should Powell refrain from signalling aggressive policy easing, the USD is more likely to build on its recent strength and exert some fresh downward pressure on the non-yielding yellow metal.

Technical levels to watch

XAU/USD

Overview
Today last price 1496.63
Today Daily Change -1.40
Today Daily Change % -0.09
Today daily open 1498.03
 
Trends
Daily SMA20 1479.11
Daily SMA50 1434.02
Daily SMA100 1363.56
Daily SMA200 1323.09
Levels
Previous Daily High 1504.54
Previous Daily Low 1492.65
Previous Weekly High 1534.4
Previous Weekly Low 1481
Previous Monthly High 1452.72
Previous Monthly Low 1382.02
Daily Fibonacci 38.2% 1497.19
Daily Fibonacci 61.8% 1500
Daily Pivot Point S1 1492.27
Daily Pivot Point S2 1486.51
Daily Pivot Point S3 1480.38
Daily Pivot Point R1 1504.17
Daily Pivot Point R2 1510.3
Daily Pivot Point R3 1516.06

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

Euro rolling into the Asian session flirting with the 1.1000 handle

The common currency, on the daily chart, is trading in a bear trend below its main daily simple moving averages (DSMAs). On Tuesday, the market will pay attention to the German ZEW survey.

EUR/USD News

GBP/USD: Bearish MACD highlights 2-week-old support-line for sellers

Following its pullback from 1.2507, GBP/USD has been on the sellers’ radar with the recent quotes being around 1.2430 amid initial Tuesday morning in Asia. The pair aims to revisit short-term rising trend-line.

GBP/USD News

USD/JPY eases-off seven-week tops as risk-aversion creeps in

USD/JPY retreats from seven-week highs of 108.36, as markets turn risk-averse amid poor Chinese macro news and ahead of the key central banks' policy announcement this week. S&P 500 futures turn negative while Treasury yields drop over 1%. 

USD/JPY News

Gold pulls back to sub-$1,500 region in search of fresh catalysts

With fewer catalysts to rely on, Gold prices trade near $1,497 during Tuesday’s Asian session. The yellow metal benefited from the drone attack on Saudi Arabian oil facilities that destroyed the oil-rich nation’s 50% output.

Gold News

Waiting for the FOMC’s good oil

Drowned out in a glut of oil headlines overnight, the FOMC two-day meeting starts today in the United States. As well as a slowing global economy made ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures