6 June, 2018
Fails to benefit from the ongoing USD retracement slide and escalating trade tensions. Fading safe-haven demand/rising US bond yields/ECB QE exit talks seemed capping gains.
Gold struggled to build on overnight goodish rebound and remained capped below the $1300 handle through the early European session on Wednesday.
Despite the ongoing US Dollar retracement, which tends to benefit dollar-denominated commodities - like gold, weakening demand for traditional safe-haven assets, amid improving risk appetite in global financial markets, was seen keeping a lid on any meaningful up-move.
Adding to this, a goodish pickup in the US Treasury bond yields, coupled with the latest ECB QE exit talks further collaborated towards driving flows away from the non-yielding yellow metal, albeit escalating global trade war fears helped limit deeper losses, at least for the time being.
Looking at the broader picture, the commodity has been oscillating within a broader trading range over the past three weeks or so. Moreover, attempted recovery moves were being sold into near the very important 200-day SMA, clearly suggesting that the near-term selling pressure might still be far from over.
Immediate support is pegged near the $1293-92 region, below which the commodity seems to head back towards $1288-87 horizontal support before eventually dropping to yearly lows support near the $1282 level.
On the upside, momentum beyond the $1300 handle might continue to confront stiff resistance near the $1307-08 region (200-DMA), which if cleared might trigger a short-covering bounce towards $1315 hurdle.
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...
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Rising diplomatic tensions continue to underpin safe-haven demand. Subdued USD price-action remains supportive of a mildly positive tone. A modest...
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The index rebounds from tops and tests 95.70. Yields of the US 10-year note ease a tad from peaks around 2.90%. US trade balance figures next of relevance...
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Brexit uncertainty, Turkish contagion fears leave the higher-yielding GBP vulnerable. Attention turns to Tuesday UK jobs report amid empty docket today...
The commodity extended last week's rejection slide from $1235 horizontal resistance and remains within striking distance of an important horizontal...
Gold has fallen to a yearly low, as it lost around 4% in June itself (end-of period prices), contrasting sharply with the above $13000/oz. price performance in the early part...