fxs_header_sponsor_anchor

News

Gold stages a goodish recovery after yesterday’s slump to one-month low

Gold staged a goodish recovery on Tuesday and recovered part previous session's sharp fall to over one-month lows, near the very important 200-day SMA. 

Currently trading around $1250 region, the precious metal benefitted from a mildly weaker tone surrounding the greenback. Yesterday's downbeat US durable goods orders data signaled a slowdown in the manufacturing sector and held investors back from buying the US Dollar, which was eventually seen boosting demand for dollar-denominated commodities - like gold.

Adding to this, a slight deterioration in investors' risk appetite, as depicted by weaker opening in the European equity markets, provided an additional boost to the yellow metal's safe-haven appeal and collaborated to the ongoing recovery move of over 1% from yesterday's swing lows to the lowest level since May 17. 

Investors now turn their attention to much awaited speech by the Fed Chair Janet Yellen, due later during the NY trading session, for fresh insight over the central bank's monetary policy outlook, which would eventually provide some fresh impetus for the non-yielding commodity.

   •  US: Economy faced with inflation slump? - AmpGFX

Technical levels to watch

Any further recovery now seems to confront strong resistance near $1255-56 region, above which a fresh bout of short-covering has the potential to continue lifting the metal further beyond $1260 level towards its next resistance near $1265-66 region.

On the flip side, $1244 level now seems to protect immediate downside, which if broken could drag the metal back towards 200-day SMA support near $1236-35 region.

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.