Gold trades with modest losses below $1620 level, downside seems limited


  • Gold witnessed some profit-taking amid a modest bounce in the USD.
  • Concerns over an imminent global recession might help limit losses.

Gold edged lower through the early European session and is currently placed near the lower end of its daily trading range, just below $1620 level.

The precious metal failed to capitalize on the previous day's goodish intraday positive move to two week tops and came under some selling pressure on the last trading day of the week.

The US dollar stalled its week-long downtrend and regained some positive traction on Friday, which seemed to be a key factor exerting pressure on the dollar-denominated commodity.

However, Thursday's unprecedented jump in the US initial weekly jobless claims provided further evidence of the devastating impact on the US economy from the coronavirus pandemic.

The data largely offset the latest optimism over a massive $2.2 trillion US economic stimulus package, instead fueled growing market concerns about an imminent global recession.

This was reinforced by a weaker tone around the global equity markets, which extended some support to the commodity's perceived safe-haven status and helped limit deeper losses.

Nevertheless, the yellow metal remains on track to end the week above the $1600 round-figure mark and post its biggest weekly gains, of over 8%, since the 2008-09 global financial crisis.

Technical levels to watch

XAU/USD

Overview
Today last price 1618.03
Today Daily Change -12.11
Today Daily Change % -0.74
Today daily open 1630.14
 
Trends
Daily SMA20 1589.32
Daily SMA50 1587.31
Daily SMA100 1540.06
Daily SMA200 1508.16
 
Levels
Previous Daily High 1644.54
Previous Daily Low 1598.08
Previous Weekly High 1561
Previous Weekly Low 1451.3
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1626.79
Daily Fibonacci 61.8% 1615.83
Daily Pivot Point S1 1603.97
Daily Pivot Point S2 1577.79
Daily Pivot Point S3 1557.51
Daily Pivot Point R1 1650.43
Daily Pivot Point R2 1670.71
Daily Pivot Point R3 1696.89

 

 

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