• Signs of stability in equity markets prompt some fresh selling.
• The USD pares early losses and added to the downward pressure.
• Investors now eye US macro data for fresh directional impetus.
Gold reversed an early uptick back closer to over three-month tops and drifted into negative territory during the early European session.
The overnight slump in the US equity markets had a spill-over effect on the Asian equity markets and underpinned the precious metal's safe-haven status at the start of Thursday's trading session.
The up-move, however, once again failed to make it through the $1239-40 region, with some signs of stability returning back to financial markets prompting some fresh selling since the early European session.
Adding to this, the US Dollar has also managed to recover a major part of its early lost ground and was seen exerting some additional downward pressure on the dollar-denominated commodity.
Moreover, investors also seemed reluctant to place any aggressive bullish bets amid firming prospects for a gradual Fed rate hike move beyond 2018, which tends to dampen demand for the non-yielding yellow metal.
Moving ahead, this week's important US macro data, starting with today's release of durable goods orders and advance GDP growth figures on Friday, will now play a key role in determining the near-term trajectory.
Technical levels to watch
Any subsequent fall is likely to find support near the $1226 area, below which the corrective slide could further get extended towards 1220 level en-route the $1215 region. On the flip side, the $1239-40 region remains an immediate strong hurdle, which if cleared should lift the commodity further towards $1250 supply zone.
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.
Recommended content
Editors’ Picks
AUD/USD falls toward 0.6400 amid mixed markets, light trading
AUD/USD is falling back toward 0.6400 in the Asian session on Monday, The pair failed to find any inspiration from the mostly upbeat Chinese business PMIs. A fresh uptick in the US Treasury bond yields and a mixed mood are weighing on the Aussie amid a China holiday.
USD/JPY hits fresh 11-month highs, approaches key 150.00 level
USD/JPY is extending gains toward 150.00, flirting with fresh 11-month highs in Asian trading on Monday. The pair is supported by the renewed upswing in the US Treasury bond yields and dovish BoJ commentary. However, Japanese FX intervention risks mount.
Gold moves below $1,850 on market caution, Fed Powell speech eyed
Gold extends its losing streak that began on September 25, trading lower around $1,840 per troy ounce during the Asian session on Monday. China’s Manufacturing PMI data was released over the weekend, which showed improvement into positive territory but failed to provide any support for the XAU/USD price.
DOT confirms trend reversal, eyes retest of $5 after reclaiming key hurdle
Polkadot price seems to be ending its downtrend after shedding 92.91% in the last two years from its all-time high of $55.09. In the last three days, DOT has inflated by 3.3%, breaching a declining trendline and confirming the potential start of an uptrend.
Week ahead – Dollar shines ahead of Nonfarm Payrolls
Dollar cruises higher, nonfarm payrolls on Friday will be crucial for this rally. Early indicators point to another solid month for the US labor market. Central bank decisions in Australia and New Zealand will also be in focus.