Gold hanging near 3-week lows

2 May, 2017

Gold oscillated in a narrow trading band, with slight negative bias, and was seen consolidating previous session's break down to 3-week lows. 

Currently hovering around $1255 region, the precious metal has now moved on the brink of breaking below the very important 200-day SMA and has been pressured by improving investors’ appetite for riskier assets - like equities. With the US government averting a shutdown, receding geopolitical tensions has been dampening demand for traditional safe-haven assets - like gold. 

Adding to this, growing bets for additional Fed rate-hike moves in 2017, despite of recent disappointment from the US economic docket, is further weighing on the non-yielding metal. 

On Tuesday, subdued US Dollar price-action was seen lending some support to the dollar-denominated commodities and has helped the commodity to hold just above the very important 200-day SMA support, at least for the time being.

In absence of any major market moving economic releases, broader market risk-sentiment and the greenback dynamics would remain key determinants of the metal's movement on Tuesday. However, given the proximity of this week's important event risks - FOMC meeting and the keenly watched US monthly jobs report (NFP), repositioning trade is likely to be a dominant theme and might lead to some volatile price action later during the day.

Technical levels to watch

On a sustained break below 200-day SMA support near $1252-50 region, the metal is likely to accelerate the slide towards $1245-44 horizontal support ahead of its next support near $1240 level. On the upside, any recovery attempts beyond $1260 level now seems to confront strong resistance near $1265-67 zone and only a decisive break through this important hurdle might negate any near-term bearish bias for the commodity.


Source link  
Gold eases from near 2-week tops

The global flight to safety continues to fuel the ongoing positive move. A goodish pickup in the US bond yields now seemed to cap further gains...

Gold stuck in tight range above $1290

Upbeat sentiment weighs on the precious metal. US Dollar Index retreats to 97 area. Coming up: ADP private sector employment and non-manufacturing...

GBP/USD drops sharply to 1.3080

Increased odds of no-deal Brexit, USD rebound knocks-off GBP/USD. All eyes remain on Brexit headlines, US macro data and EU Summit...


Gold rebounds from 200-hour SMA

The precious metal stalled its overnight sharp retracement slide from 1-1/2 week tops and managed to find decent support/regain positive traction...

Dollar retreats farther from year tops

Fed rate hike uncertainty kept the USD bulls on the defensive at the start of a new trading week. Global growth concerns underpin safe-haven demand...

Gold remains vulnerable

On Tuesday, the precious metal faced rejection near a short-term descending trend-line, extending from over three-month tops set in October through highs...


Gold trades with gains, around $1215

A subdued USD demand helps build on this week's rebound. Improving risk sentiment does little to prompt fresh selling. US-China trade optimism/Fed rate hike...

WTI vulnerable, but holds $ 66

Bearish API report, Saudi's pledge and stronger US weigh down on oil. Attention turns towards EIA crude stocks data for fresh impetus to the oil markets...

Gold holds steady below 2 month highs

Rising diplomatic tensions continue to underpin safe-haven demand. Subdued USD price-action remains supportive of a mildly positive tone. A modest...

  


Share it on:   or