- Positive trade-related developments exerted some pressure on traditional safe-haven assets.
- Recovering US bond yields underpinned the USD and further collaborated to the weaker tone.
- The downside seems limited amid escalating geopolitical tensions, global growth concerns.
Gold traded with a mild negative bias through the early European session on Wednesday, albeit remained well within the striking distance of near three-week tops set in the previous session.
On Tuesday, the safe-haven gold quickly reversed an early dip to the $1515 region and turned higher for the fourth consecutive session in reaction to reports that an impeachment inquiry will be started against the US President Donald Trump. The intraday uptick got an additional boost following Trump's angry rhetoric on China during a United Nations speech, criticizing that the dragon nation hasn't adopted the promised reforms.
Renewed trade optimism exerts some pressure
However, concerns about worsening trade relations between the world's two largest economies eased a bit on Wednesday following reports that China is planning to buy more US farm products as a goodwill gesture ahead of the upcoming high-level trade talks in early-October. The latest positive development helped improve the global risk sentiment and eventually weighed on the precious metal's safe-haven status.
Fading safe-haven demand was further reinforced by a goodish pickup in the US Treasury bond yields, which extended some support to the US Dollar and further collaborated towards exerting some pressure on the dollar-denominated - Gold. The downside seemed limited, at least for the time being, amid concerns about a further escalation of geopolitical tensions in the Middle East and health of the global economy.
Moving ahead, there isn't any major market-moving US economic data due for release on Wednesday and hence, traders are likely to take cues from scheduled speeches by influential FOMC members - Chicago Fed President Charles Evans and Kansas City Fed President Esther George - in order to grab some short-term opportunities.
Technical levels to watch
|Today last price||1528.62|
|Today Daily Change||-3.08|
|Today Daily Change %||-0.20|
|Today daily open||1531.7|
|Previous Daily High||1535.42|
|Previous Daily Low||1515.8|
|Previous Weekly High||1517.15|
|Previous Weekly Low||1484.56|
|Previous Monthly High||1554.63|
|Previous Monthly Low||1400.9|
|Daily Fibonacci 38.2%||1527.93|
|Daily Fibonacci 61.8%||1523.3|
|Daily Pivot Point S1||1519.86|
|Daily Pivot Point S2||1508.02|
|Daily Pivot Point S3||1500.23|
|Daily Pivot Point R1||1539.48|
|Daily Pivot Point R2||1547.27|
|Daily Pivot Point R3||1559.11|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.