Gold trades with modest losses, holds above $1722 support zone


  • Gold edged lower on Monday amid a mildly positive tone around the equity markets.
  • The USD managed to preserve its gains and further contributed to the weaker tone.
  • Worsening US-China relations might lend some support and help limit deeper losses.
  • A sustained break below $1722 support needed to confirm any intraday bearish bias.

Gold met with some fresh supply on Monday, albeit lacked any strong follow-through selling and was last seen trading with only modest losses, just below $1730 level.

The commodity struggled to preserve its gains from the previous session, instead met with some fresh supply on the first day of a new trading week. A positive mood around the global equity markets was seen undermining the precious metal's safe-haven demand.

Adding to this, the US dollar held steady with modest gains and exerted some additional downward pressure on the dollar-denominated commodity. However, concerns over worsening US-China relations helped limit deeper losses, at least for the time being.

Diplomatic tensions between the world's two largest economies escalated further on reports that China is planning to impose national security laws in Hong Kong. The US President Donald Trump was quick to respond and threatened a strong reaction if the law is passed.

This comes on the back of the recent development, where in the US Senate passed a bill that could block some Chinese companies from selling shares on the American stock exchanges. This, in turn, fueled worries about a major US-China tussle.

Given that the US banks will be closed on Monday in observance of Memorial Day, relatively thin liquidity conditions might hold investors from placing any aggressive bets and continue lending some support to the yellow metal.

Even from a technical perspective, the commodity, so far, has managed to defend the $1722 horizontal support. This should act as a key pivotal point for intraday traders amid absent relevant market moving economic releases from the US.

Technical levels to watch

XAU/USD

Overview
Today last price 1728.42
Today Daily Change -5.80
Today Daily Change % -0.33
Today daily open 1734.22
 
Trends
Daily SMA20 1715.66
Daily SMA50 1663.44
Daily SMA100 1626.42
Daily SMA200 1559.69
 
Levels
Previous Daily High 1740.43
Previous Daily Low 1724.46
Previous Weekly High 1765.38
Previous Weekly Low 1717.34
Previous Monthly High 1747.82
Previous Monthly Low 1568.46
Daily Fibonacci 38.2% 1734.33
Daily Fibonacci 61.8% 1730.56
Daily Pivot Point S1 1725.64
Daily Pivot Point S2 1717.07
Daily Pivot Point S3 1709.67
Daily Pivot Point R1 1741.61
Daily Pivot Point R2 1749.01
Daily Pivot Point R3 1757.58

 

 

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 holds gains above 1.13 on mixed US COVID-19 stats

EUR/USD holds the higher ground above 1.13 as US stocks rise and the safe-haven dollar retreats. Investors are shrugging off EU disagreements amid mixed US coronavirus stats. 

EUR/USD News

Gold consolidates above $1800, holds onto gains looking at $1825

The yellow metal rose further and reached the highest level since 2011 at $1818/oz after the beginning of the American session. It then moved off highs, finding support at $1808.

Gold News

GBP/USD edges up amid Sunak's fiscal stimulus, shrugging off Brexit

GBP/USD is trading above 1.2550, shrugging off Germany's Merkel comments that Brexit talks made little progress and may end with no deal. UK Chancellor Sunak presented fiscal plans including a retention bonus for firms that re-hire workers. 

GBP/USD News

Altcoin season rocks on under the radar

The Altcoin segment is boiling hot, laying the foundations for a massive bull market. Despite the apparent calm on the surface, Cardano, Chainlink or Ripple knock hard on the heavens' door. The war for dominance distracts Bitcoin and Ethereum, focused on the power play.

Read more

WTI on the move to fresh session highs, testing $41 the figure

We are now over 1% higher on the day despite the crude oil inventories in the United States swelling by 5.7 million barrels in the week to July 3, information that was provided by the Energy Information Administration. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures