- Gold witnessed a modest intraday pullback amid a pickup in the USD demand.
- The prevalent risk-off mood extended some support to the safe-haven metal.
- A sustained break below the $1800 mark is needed to confirm a bearish break.
Gold remained depressed through the early North American session, albeit has managed to recover a major part of its early losses to the $1800 neighbourhood.
The precious metal struggled to capitalize on this week's goodish bounce from the $1790 support area and witnessed a modest pullback on Thursday. A modest pickup in the US dollar demand was seen as one of the key factors exerting some pressure on the dollar-denominated commodity, albeit a combination of factors helped limit deeper losses.
Against the backdrop of the ever-increasing coronavirus cases globally, concerns about worsening US-China relation took its toll on the global risk sentiment. The global flight to safety was reinforced by a weaker tone surrounding the US Treasury bond yields, which extended some support to the non-yielding yellow metal.
Meanwhile, the USD struggled to preserve its early gains despite better-than-expected US macro releases and might further impressed bullish traders. This, in turn, makes it prudent to wait for a sustained break below the $1800 level before traders start positioning for any further intraday depreciating move.
The commodity was last seen hovering around the $1807-08 region. Some follow-through move up might continue to confront some resistance near the $1813-15 area, above which the momentum should lift the commodity beyond multi-year tops, around the $1818 level, towards testing the next major hurdle near the $1828-30 region.
Technical levels to watch
|Today last price||1806.66|
|Today Daily Change||-3.78|
|Today Daily Change %||-0.21|
|Today daily open||1810.44|
|Previous Daily High||1815.1|
|Previous Daily Low||1802.56|
|Previous Weekly High||1818.17|
|Previous Weekly Low||1770.16|
|Previous Monthly High||1785.91|
|Previous Monthly Low||1670.76|
|Daily Fibonacci 38.2%||1810.31|
|Daily Fibonacci 61.8%||1807.35|
|Daily Pivot Point S1||1803.63|
|Daily Pivot Point S2||1796.83|
|Daily Pivot Point S3||1791.09|
|Daily Pivot Point R1||1816.17|
|Daily Pivot Point R2||1821.91|
|Daily Pivot Point R3||1828.71|
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