- 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
|Today last price||1506.22|
|Today Daily Change||-7.38|
|Today Daily Change %||-0.49|
|Today daily open||1513.6|
|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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