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Gold plummets to near 2-month lows, around $1460

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Gold plummets to near 2-month lows, around $1460

  • US-China trade optimism continues to weigh on the commodity’s safe-haven status.
  • Rising US bond yields fueled the ongoing USD bullish run and add to the selling bias.
  • The overnight breakthrough neckline support further aggravates the bearish slide.

Gold added to its recent losses and dropped to near two-month lows, around the $1460 region during the early European session on Tuesday.

A combination of forces kept exerting downward pressure for the third consecutive session on Tuesday – also marking its fourth day of a negative move in the previous five – and contributed to the precious metal’s ongoing corrective slide from multi-year tops set on September 4.

Risk-on mood adds to the recent selling bias

Against the backdrop of growing optimism over a possible resolution of the prolonged US-China trade dispute, the prevalent risk-on mood was seen as one of the key factors weighing on traditional safe-haven assets and exerting some heavy pressure on the precious metal Gold.

Improving global risk was reinforced by a strong follow-through pickup in the US Treasury bond yields higher, which provided an additional boost to the ongoing US Dollar bullish run to two-year tops and further collaborated towards driving flows away from the non-yielding yellow metal.

Tuesday’s downfall could also be attributed to some technical selling, especially after the previous session’s decisive break below the $1483-80 horizontal zone – marking the neckline support of a bearish head and shoulders pattern formation on the daily chart.

Hence, a subsequent slide back towards testing a previous strong resistance, now turned support near the $1448-47 region, now looks a distinct possibility ahead of Tuesday’s important release of the US ISM manufacturing PMI for September, due later during the early North-American session.

Technical levels to watch

XAU/USD

OVERVIEW
Today last price 1461.5
Today Daily Change -11.17
Today Daily Change % -0.76
Today daily open 1472.67
TRENDS
Daily SMA20 1506.86
Daily SMA50 1493.82
Daily SMA100 1425.28
Daily SMA200 1360.7
LEVELS
Previous Daily High 1500.36
Previous Daily Low 1464.61
Previous Weekly High 1535.42
Previous Weekly Low 1487.2
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1478.27
Daily Fibonacci 61.8% 1486.7
Daily Pivot Point S1 1458.07
Daily Pivot Point S2 1443.46
Daily Pivot Point S3 1422.32
Daily Pivot Point R1 1493.82
Daily Pivot Point R2 1514.96
Daily Pivot Point R3 1529.57
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