Gold turns lower for the day, drops to session lows below $1490 level

  • The prevalent risk-on mood dented demand for traditional safe-haven assets.
  • A modest pickup in the USD demand further added to the intraday selling bias.

Having failed to capitalize on its early uptick, Gold drifted into the negative territory and dropped to fresh session lows in the last hour.
A combination of negative factors failed to assist the precious metal in building on the previous session's modest uptick, rather exerted some fresh downward pressure since the mid-European session on Tuesday.

Risk-on/a modest USD uptick weighed

The prevalent risk-on mood, as depicted by a bullish trading sentiment around equity markets, weighed on traditional safe-haven assets and was seen as one of the key factors behind the initial leg of the intraday slide. This coupled with a modest pickup in the US Dollar demand exerted some additional downward pressure on the dollar-denominated commodity and further collaborated to the pullback from the $1500 neighbourhood.
Meanwhile, a sharp intraday fall in the US Treasury bond yields and firming expectations that the Fed will cut rates in October did little to lend any support, albeit might help limit deeper losses for the non-yielding yellow metal.
Hence, it will be prudent to wait for a strong follow-through selling before traders start positioning for any further depreciating move amid absent relevant market moving economic releases from the US on Tuesday.

Technical levels to watch


Today last price 1488.27
Today Daily Change -4.92
Today Daily Change % -0.33
Today daily open 1493.19
Daily SMA20 1500.66
Daily SMA50 1507.26
Daily SMA100 1446.61
Daily SMA200 1371.61
Previous Daily High 1496.96
Previous Daily Low 1482.98
Previous Weekly High 1516.85
Previous Weekly Low 1474.2
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1491.62
Daily Fibonacci 61.8% 1488.32
Daily Pivot Point S1 1485.13
Daily Pivot Point S2 1477.07
Daily Pivot Point S3 1471.16
Daily Pivot Point R1 1499.11
Daily Pivot Point R2 1505.02
Daily Pivot Point R3 1513.08



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