fxs_header_sponsor_anchor

News

Gold hangs near 17-month lows, around $1212 level

   •  Fed rate hike prospects kept a lid on Friday’s goodish rebound. 
   •  A modest USD uptick prompts some fresh selling on Monday.
   •  Weaker equities extend some support and helped limit downside.

Gold reversed an uptick to $1218 area and is currently placed at the lower end of its daily trading range, around the $1212 region.

The commodity struggled to build on Friday's goodish rebound from 17-month lows and was being capped by a combination of negative factors. The July US monthly jobs report reinforced market expectations that the Fed will stick to its gradual monetary policy tightening cycle and kept a lid on any meaningful up-move for the non-yielding yellow metal.

This coupled with a follow-through greenback buying interest, with the key US Dollar Index holding with modest gains above the key 95.00 handle, was now seen prompting some fresh selling around dollar-denominated commodities - like gold.

Meanwhile, a negative opening across European bourses extended some support to the precious metal's safe-haven appeal and helped limit deeper losses, at least for the time being. 

Moving ahead, today's US economic docket lacks any major market-moving economic releases. Hence, the USD price dynamics and broader market risk sentiment might continue to act as key determinants of the commodity's movement on the first trading day of the week. 

Technical levels to watch

Immediate support is pegged near $1207-06 area, below which the metal could slide to test the $1200 round figure mark. On the flip side, the $1218-20 region now seems to have emerged as an immediate hurdle, which if cleared might trigger a short-covering bounce and lift the commodity further towards $1224-25 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.