• Fails to extend early up-move beyond 100-DMA.
• Sliding US bond yields/risk-off environment supportive.
• This week’s key events/US macro data holds the key.
Gold held on to its modest daily gains through the early NA session but struggled to gain any follow through traction beyond 100-day SMA.
Currently hovering around $1278-77 area, off session tops touched in the past hour, a fresh wave of global risk aversion trade benefitted the precious metal's safe-haven demand at the start of a busy week. The global flight to safety was further reinforced by a sharp retracement in the US Treasury bond yields and remained supportive of a modest pickup in demand for the non-yielding commodity.
However, resurgent US Dollar, which tends to drive flows away from dollar-denominated commodities - like gold, kept a lid further up-move. Moreover, investors also seemed to refrain from placing aggressive bet ahead of this week's key US economic report.
This week's important US macro data includes the release of latest inflation figures and monthly retail sales data, which along with the Fed Chair Janet Yellen's speech on Tuesday would be looked upon for fresh clues over the Fed's near-term monetary policy outlook.
Apart from the monetary policy trajectory, market participants will also keep a close eye and take cues from any new developments surrounding the Trump administration’s tax legislation.
Technical levels to watch
Immediate support is pegged near the $1273 region, below which the commodity is likely to accelerate the slide towards $1269 horizontal level before eventually dropping to $1260 support.
On the upside, any further up-move is likely to confront fresh supply near the $1281-82 region, which if cleared could lift the metal back towards $1288 (multi-week tops) en-route $1295 hurdle.
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 hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.