Gold Price Analysis: XAU/USD bears pause around two-week low above $1,700


  • Gold registers a little momentum after bouncing multiple times off $1,709.
  • Fears of the US sanctions on China, Russian jets’ interception to the American Navy patrol aircraft probe previous optimism.
  • A light calendar could keep traders directed to qualitative catalysts, mainly relating to US-China tussle, for fresh clues.

Gold consolidates losses near the lowest since May 13 while taking rounds to $1,711/12 amid the early Asian session on Wednesday. The bullion dropped heavily the previous day as global markets shun safe-haven demand amid broad risk-on sentiment. Though the latest challenges to the US-China the US-Russia relations seem to probe the bears.

Having initially stepped back from attacking China’s move to grab powers in Hong Kong, US President Donald Trump cited sanctions on the Asian major coming by the end of the week. Also questioning the earlier optimism could be the statement from the US Navy suggesting that two Russian Su-35 jets "unsafely" intercepted a US Navy P-8 patrol aircraft.

Following the fresh news, S&P 500 futures parted ways from its benchmark on Wall Street by declining 0.10% to 2,991.

It’s worth mentioning that the bullion’s drop on Tuesday took clues from increasing calls of the major economic restart while also appreciating the global efforts to find a cure to the coronavirus (COVID-19).

Although the recent headlines have stopped the yellow metal sellers, for now, buyers are still waiting for a firm direction to benefit from the risk-off sentiment. As a result, the headlines concerning the US relations with China and Russia, as well as any major news concerning Hong Kong, could gain market attention amid a light calendar in Asia.

Technical analysis

A sustained break of the monthly support line, now resistance, keeps sellers hopeful of revisiting April 30 low near $1,670. Though, an upside clearance of $1,724 support-turned-resistance could question the short-term resistance line, stretched from May 18, around $1,730.

Additional important levels

Overview
Today last price 1711.5
Today Daily Change -15.30
Today Daily Change % -0.89%
Today daily open 1726.8
 
Trends
Daily SMA20 1716.29
Daily SMA50 1667.36
Daily SMA100 1628.2
Daily SMA200 1560.76
 
Levels
Previous Daily High 1736.02
Previous Daily Low 1721.89
Previous Weekly High 1765.38
Previous Weekly Low 1717.34
Previous Monthly High 1747.82
Previous Monthly Low 1568.46
Daily Fibonacci 38.2% 1727.29
Daily Fibonacci 61.8% 1730.62
Daily Pivot Point S1 1720.45
Daily Pivot Point S2 1714.11
Daily Pivot Point S3 1706.32
Daily Pivot Point R1 1734.58
Daily Pivot Point R2 1742.37
Daily Pivot Point R3 1748.71

 

 

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