Gold trims losses after finding resistance at $1230

Gold rebounds from 3-day lows but fails to break above $1,230/oz.
Yellow metal receives support from lower US yields amid risk aversion.

Matías Salord FXStreet

Gold climbed from $1,218/oz and peaked at $1,230 during the US session but found resistance and pulled back. As of writing was trading around $1,225 away from the highs but still on positive ground for the day. The metal continues to move in a consolidation range between $1,220 and $1,230.

XAU/USD rose amid an increase in the demand for safe-haven assets amid a slide in equities but the upside was limited by a stronger US dollar. The greenback hit weekly highs versus European currencies but pulled back against the yen on the back of lower US yields. The recovery in Treasuries also added support to gold.

Technical outlook

“The metal retains the positive tone according to the daily chart, as the price continues developing above the 100 DMA, while the 20 DMA advances below it. Indicators in the mentioned chart remain flat near overbought readings, giving not much clue on upcoming direction”, says Valeria Bednarik, Chief Analyst at FXStreet.

In the short-term she points out that the 4 hours chart shows the metal with a neutral-to-positive stance, as technical indicators post modest advances, the Momentum around its 100 level and the RSI at 59 and price a few cents above a flat 20 SMA.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.