Gold jumps beyond $1500 mark, back closer to weekly tops

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Gold jumps beyond $1500 mark, back closer to weekly tops

  • The post-FOMC fall in the US bond yields/USD helped gain some follow-through traction.
  • Not so optimistic comments from China further benefitted traditional safe-haven assets.

Gold gained some follow-through traction through on Thursday and climbed further beyond the key $1500 psychological mark during the early European session.

The precious metal added to the overnight post-FOMC goodish intraday bounce from over one-week lows and attracted some safe-haven flows amid renewed US-China trade uncertainties. It is worth reporting that Chile canceled a November meeting of the Asia Pacific Economic Cooperation Council, which was supposed to the venue for the signing of a partial trade deal between the world’s two largest economies.

The risk-off mood remained support

Meanwhile, the latest leg of a sudden uptick over the past hour or so was led by reports, suggesting that China is casting doubts about reaching a comprehensive long-term trade deal with the US. Adding to this, Chinese officials have warned that they won’t budge on structural issues either. The report further noted that China is demanding an end to tariffs in order to begin any talks for “Phase Two”.

The global flight to safety was further evident from a sharp intraday slide in the US Treasury bond yields. Against the backdrop of Wednesday’s less hawkish than expected FOMC statement, a fresh leg of a freefall in the US bond yields exerted some additional pressure on the US Dollar and remained supportive of the bid tone surrounding the non-yielding yellow metal.

The commodity has now moved back closer to weekly tops, though any subsequent move is likely to confront a stiff resistance near the $1510 supply zone ahead of Friday’s release of the closely watched US monthly jobs report – popularly known as NFP. Hence, it will be prudent to wair for a sustained move beyond the mentioned barrier before positioning for any further near-term appreciating move.

Technical levels to watch


Today last price 1504.84
Today Daily Change 9.24
Today Daily Change % 0.62
Today daily open 1495.6
Daily SMA20 1494.6
Daily SMA50 1504.4
Daily SMA100 1467.65
Daily SMA200 1383.87
Previous Daily High 1496.64
Previous Daily Low 1481.1
Previous Weekly High 1517.92
Previous Weekly Low 1481.05
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1490.7
Daily Fibonacci 61.8% 1487.03
Daily Pivot Point S1 1485.59
Daily Pivot Point S2 1475.58
Daily Pivot Point S3 1470.06
Daily Pivot Point R1 1501.13
Daily Pivot Point R2 1506.65
Daily Pivot Point R3 1516.66
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