Gold trades with modest losses, downside remains limited


  • 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

XAU/USD

Overview
Today last price 1806.66
Today Daily Change -3.78
Today Daily Change % -0.21
Today daily open 1810.44
 
Trends
Daily SMA20 1778.81
Daily SMA50 1744.48
Daily SMA100 1692.99
Daily SMA200 1605.54
 
Levels
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

 

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends gains as ADP NFP disappoints with only 167K

EUR/USD is trading above 1.1850, extending its gains after ADP's private-sector report badly misses expectations with an increase of only 167,000 jobs in July. The greenback had already been falling with yields.

EUR/USD News

XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades well above 1.31 amid dollar weakness

GBP/USD is advancing towards this month high at 1.3169, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. US Services PMIs are eyed. The ADP NFP missed with 167K.

GBP/USD News

ETH/BTC on retreat, BTC recovery gains traction

ETH/BTC has topped at $0.03528 on Tuesday and retreated to $0.03448 by the time of writing. The cross has lost about 1% since the start of the day. The RSI on a daily chart reversed to the downside, signaling that the price is ready for a correction from overbought territory.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures