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NEWS :Gold slips back closer to overnight swing low, below $1415 level

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Gold slips back closer to overnight swing low, below $1415 level

  • The prevalent risk-on mood undermined the commodity’s safe-haven status.
  • Fed rate cut expectations/subdued USD demand does little to lend any support.
  • The downside seems limited amid US holiday and ahead of Friday’s NFP report.

Gold prices edged lower on Thursday and dropped back closer to the previous session swing low, around the $1413 region.

Tracking the overnight solid gains on Wall Street – with all the three major indices posting record closing highs, Asian stocks advanced on Thursday and turned out to be one of the key factors undermining the precious metal’s relative safe-haven demand.

The incoming softer US economic data – Wednesday’s ADP report and ISM non-manufacturing PMI being the latest, reinforced market expectations that the Fed will eventually move to cut interest rates this month and boosted investors’ appetite for perceived riskier assets – like equities.

However, a subdued US Dollar demand might extend some support to the dollar-denominated commodity. This coupled with the recent slump in the US Treasury bond yields to more than 2-1/2 year lows might further collaborate towards limiting the downside for the non-yielding yellow metal.

Hence, it would be prudent to wait for a strong follow-through selling before confirming that the commodity might have already topped out near the $1440 region and positioning for any further near-term corrective slide as the focus now shifts to Friday’s closely watched US monthly jobs report (NFP).

Technical levels to watch

XAU/USD

Overview
Today last price 1414.31
Today Daily Change -4.47
Today Daily Change % -0.32
Today daily open 1418.78
Trends
Daily SMA20 1373.8
Daily SMA50 1322.39
Daily SMA100 1312.06
Daily SMA200 1281.68
Levels
Previous Daily High 1436.2
Previous Daily Low 1412.5
Previous Weekly High 1438.66
Previous Weekly Low 1399.33
Previous Monthly High 1438.66
Previous Monthly Low 1306.18
Daily Fibonacci 38.2% 1421.55
Daily Fibonacci 61.8% 1427.15
Daily Pivot Point S1 1408.78
Daily Pivot Point S2 1398.79
Daily Pivot Point S3 1385.08
Daily Pivot Point R1 1432.48
Daily Pivot Point R2 1446.19
Daily Pivot Point R3 1456.18
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