|

Gold climbs to fresh two-week tops, above $1505 level

  • Reviving safe-haven demand helped build on the recent positive move.
  • Fed rate cut expectations/subdued USD price action remained supportive.

Gold edged higher on the last trading day of the week and climbed to fresh two-week tops, around the $1507 region in the last hour.
 
The precious metal gains some follow-through traction for the fourth straight session on Friday and added to this week's positive move, further beyond the key $1500 psychological mark amid reviving safe-haven demand.

Bulls trying to seize near-term control

Against the backdrop of growing concerns about slowing global economic growth, risk of an early snap election in the UK weighed on investors' sentiment and drove flows towards traditional safe-haven assets – including Gold.
 
The global flight to safety was further evident from a modest downtick in the US Treasury bond yields, which coupled with firming Fed rate cut expectations provided an additional boost to the non-yielding yellow metal.
 
Adding to this, a subdued US Dollar price action further underpinned demand for the dollar-denominated commodity, albeit the uptick seemed to lack any strong bullish conviction on the back of US-China trade optimism.
 
Reports suggested that China aims to buy at least $20 billion of American farm products as a part of the phase one deal in the first year. This would bring purchases back to 2017 levels, or before the US-China trade war began.
 
In the absence of any major market-moving economic releases from the US, the broader market risk sentiment and the USD price dynamics might produce some short-term trading opportunities on the last day of the week.

Technical levels to watch

XAU/USD

Overview
Today last price1504.61
Today Daily Change1.31
Today Daily Change %0.09
Today daily open1503.3
 
Trends
Daily SMA201493.02
Daily SMA501505.19
Daily SMA1001461.14
Daily SMA2001379.63
 
Levels
Previous Daily High1504.25
Previous Daily Low1488.1
Previous Weekly High1497.95
Previous Weekly Low1477.15
Previous Monthly High1557.03
Previous Monthly Low1464.61
Daily Fibonacci 38.2%1498.08
Daily Fibonacci 61.8%1494.27
Daily Pivot Point S11492.85
Daily Pivot Point S21482.4
Daily Pivot Point S31476.7
Daily Pivot Point R11509
Daily Pivot Point R21514.7
Daily Pivot Point R31525.15

Author

Haresh Menghani

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

More from Haresh Menghani
Share:

Editor's Picks

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months. 

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.