Gold trades with modest losses, still above $1500 mark


  • Strong equities undermined safe-haven demand and exerted some pressure.
  • Global growth concerns/US-China trade disputes to help limit the downside.
  • This week’s key focus will remain on FOMC minutes/ Jackson Hole Symposium.

Gold prices edged lower for the second consecutive session on Monday, albeit managed to hold its neck above the key $1500 psychological mark.
 
A further improvement in the global risk sentiment - as depicted by a strong rally across equity markets - dented demand for traditional safe-haven assets and turned out to be one of the key factors exerting some downward pressure on the precious metal.

Focus on US-China trade/Fed’s policy outlook

However, a combination of supporting factors - including mounting concerns about slowing global economic growth and uncertainty over a possible resolution to the prolonged US-China trade disputes - helped limit any meaningful corrective slide.
 
Traders might also refrain from positioning for any deeper losses, rather preferred to stay on the sidelines ahead of Wednesday’s release of the FOMC meeting minutes and the Fed Chair Jerome Powell's speech at the key Jackson Hole Symposium on Friday.
 
The FOMC minutes and Powell's remarks will be closely scrutinized for a fresh insight over the central bank's near-term monetary policy outlook, which will play an important role in determining the next leg of a directional move for the non-yielding yellow metal.
 
In the meantime, a subdued US Dollar price action seems unlikely to influence the demand for the dollar-denominated commodity amid absent relevant market-moving US economic releases on the first trading day of a new week.

Technical levels to watch

XAU/USD

Overview
Today last price 1506.22
Today Daily Change -7.38
Today Daily Change % -0.49
Today daily open 1513.6
 
Trends
Daily SMA20 1463.04
Daily SMA50 1420.56
Daily SMA100 1355.11
Daily SMA200 1317.2
Levels
Previous Daily High 1527.65
Previous Daily Low 1504.2
Previous Weekly High 1534.4
Previous Weekly Low 1481
Previous Monthly High 1452.72
Previous Monthly Low 1382.02
Daily Fibonacci 38.2% 1513.16
Daily Fibonacci 61.8% 1518.69
Daily Pivot Point S1 1502.65
Daily Pivot Point S2 1491.7
Daily Pivot Point S3 1479.2
Daily Pivot Point R1 1526.1
Daily Pivot Point R2 1538.6
Daily Pivot Point R3 1549.55

 

 

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