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NEWS :Gold sticks to modest gains, around $1425 region

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Gold sticks to modest gains, around $1425 region

  • Persistent global trade worries continue to benefit the commodity’s safe-haven status.
  • A fresh leg of a downfall in the US bond yields undermine USD and remained supportive.
  • Traders now eye US ADP report and ISM non-manufacturing PMI for some impetus.

Gold surrendered a major part of its early gains back closer to multi-year tops, though has managed to hold its neck above session lows and is currently trading around the $1425 region.

The precious metal continued gaining positive traction for the second consecutive session and added to the previous session’s strong gains. A combination of supporting factors lifted triggered a sharp up-move on Tuesday, lifting spot prices back above the key $1400 psychological mark.

As investors looked past the latest optimism over the US-China trade truce, persistent trade war fears continued weighing on investors’ sentiment and provided an additional boost to the precious metal’s relative safe-haven status during the Asian session on Wednesday.

The global risk sentiment took a knock after the US threatened to impose tariffs on $4 billion worth of European goods, which coupled with a fresh leg of a downfall in the US Treasury bond yields further collaborated towards driving flows towards the non-yielding yellow metal.

Despite the supporting factors, the positive momentum quickly ran out of the steam near the $1440 region. The intraday pullback lacked any obvious fundament catalyst and might now be seen as the first sign of a possible bullish exhaustion, paving the way for a near-term corrective slide.

Moving ahead, Wednesday’s US economic docket – featuring the releases of ADP report on private-sector employment and ISM non-manufacturing PMI, might influence the US Dollar price dynamics and eventually provide some impetus to the dollar-denominated commodity.

Technical levels to watch

XAU/USD

Overview
Today last price 1425.13
Today Daily Change 6.87
Today Daily Change % 0.48
Today daily open 1418.26
Trends
Daily SMA20 1369.38
Daily SMA50 1319.51
Daily SMA100 1310.99
Daily SMA200 1280.52
Levels
Previous Daily High 1421.15
Previous Daily Low 1382.1
Previous Weekly High 1438.66
Previous Weekly Low 1399.33
Previous Monthly High 1438.66
Previous Monthly Low 1306.18
Daily Fibonacci 38.2% 1406.23
Daily Fibonacci 61.8% 1397.02
Daily Pivot Point S1 1393.19
Daily Pivot Point S2 1368.12
Daily Pivot Point S3 1354.14
Daily Pivot Point R1 1432.24
Daily Pivot Point R2 1446.22
Daily Pivot Point R3 1471.29
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