Gold climbs to $1340 on weaker USD

Haresh Menghani FXStreet

• USD inches down and helps regain traction.
• Weaker bond yields supportive of the up-move.
• US monetary policy outlook eyed for fresh impetus.

Gold prices edged up at the start of a new trading week and recovered around 50% of last week's losses of more than 1%, buoyed by a weaker greenback.

Currently trading around the $1339-40 region, testing session tops, a fresh wave of US Dollar selling pressure was seen benefitting dollar-denominated commodities - like gold. The renewed buying interest was backed by weakness in the US Treasury bond yields, which tends to boost demand for the non-yielding yellow metal.

Meanwhile, the prevalent risk-on mood, as depicted by strong gains across global equity markets, did little to underpin the precious metal's safe-haven demand, albeit failed to stall the bullish momentum through the early European session.

It would now be interesting to see if the commodity is able to sustain/build on the bullish momentum as investors now look forward to the Fed Chairman Jerome Powell's first congressional testimony on Tuesday for fresh clues over the pace of monetary policy tightening cycle, which would eventually help determine the next leg of directional move.

Technical levels to watch

Immediate resistance is pegged near $1346-47 area, above which the commodity seems to move past $1353-54 supply zone and head back towards retesting $1358-60 strong resistance.

On the flip side, the $1338-37 region now seems to protect the immediate downside, which if broken might prompt some fresh selling and drag the metal back towards $1326 intermediate support en-route $1320 level.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.