fxs_header_sponsor_anchor

News

Gold consolidates post-NFP slide to over 2-week lows

   •  Subdued USD demand lends some support.
   •  Risk-off mood provides an additional boost.
   •  Fed rate hike prospects to cap strong gains.

Gold consolidated Friday's downfall to over 2-week lows and was seen oscillating in a narrow trading band around the $1330 region. 

Friday's robust US jobs data raised prospects of at least three rate hike moves by the US Federal Reserve and prompted some aggressive selling around the non-yielding yellow metal. 

The US Dollar rebound, however, lacked any strong follow-through traction at the start of a new trading week and was eventually seen lending some support to dollar-denominated commodities - like gold. 

Adding to this, a fresh wave of global risk aversion trade, as depicted by a selloff across equity markets, underpinned demand for traditional safe-haven assets and further collaborated towards limiting any further downside. 

Later during the early NA session, the release of US ISM non-manufacturing PMI, the key highlight of today's US economic docket, would now be looked upon for some fresh trading impetus. 

Technical levels to watch

Immediate support is pegged near the $1328-26 region, which if broken could accelerate the fall towards $1320 horizontal level en-route $1312 important support. On the upside, any meaningful bounce is likely to confront immediate resistance near $1337 level, above which the commodity could head back towards testing $1350 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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.