Gold edges higher to recover a part of Thursday’s sharp decline

• A subdued USD demand/retracing US bond yields helped regain some traction.
• US-China trade optimism undermines safe-haven demand and seemed to cap.

Gold edged higher on the last trading day of the week and recovered a part of the overnight sharp fall back closer to weekly lows.

The precious metal stalled this week's retracement slide from ten-month tops and managed to regain some positive traction on Friday. A subdued US Dollar demand, led by a weaker tone surrounding the US Treasury bond yields, turned out to be one of the key factors benefitting the dollar-denominated commodity.

Meanwhile, investors looked past the latest FOMC meeting minutes, with Thursday's weaker US macro data - durable goods orders and Philly Fed manufacturing index reaffirming expectations that the Fed will hold interest rates steady and extending some additional support to the non-yielding yellow metal.

Further gains, however, remained limited in wake of the latest positive trade news, wherein the world's two biggest economies were reported to be currently outlining a deal and may soon reach an agreement, which dampened the precious metal's perceived relative safe-haven status.

In absence of any major market moving economic releases from the US, speeches by influential FOMC members will play an important role in influencing the price-action and might produce some meaningful trading opportunities on the last trading day of the week.

Technical levels to watch

Immediate resistance is now pegged near the $1330 level, above which the commodity is likely to accelerate the up-move towards $1335-36 supply zone before eventually aiming to surpass the $1340 hurdle. On the flip side, the $1321-20 region now seems to have emerged as immediate support, which if broken might prompt some additional weakness towards $1315-14 horizontal support en-route $1306-04 zone.

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.