16 October, 2018
Rising diplomatic tensions continue to underpin safe-haven demand. Subdued USD price-action remains supportive of a mildly positive tone. A modest uptick in the US bond yields seemed to cap meaningful up-move.
Gold traded with a mild positive bias on Tuesday and remained within striking distance of 2-1/2 month high, set in the previous session.
A combination of positive factors helped the precious metal to build on last week's strong bullish momentum and lifted it to an intraday high level of $1233.30, the highest since July 26.
Rising diplomatic tensions between Western powers and Saudi Arabia, over the disappearance of journalist Jamal Khashoggi, was seen underpinning the precious metal's safe-haven status.
This coupled with some renewed US Dollar selling bias, further aggravated by Monday's disappointing release of US monthly retail sales data, provided an additional boost to the dollar-denominated commodity.
The momentum lifted the commodity beyond the 100-day SMA for the first time since late-April, though a modest uptick in the US Treasury bond yields kept a lid on any runaway rally for the non-yielding yellow metal.
With the USD struggling to gain any traction, a follow-through up-move, supported by some technical buying, remains a distinct possibility amid absent relevant market moving economic releases from the US.
The $1233-35 region might continue to act as an immediate resistance, above which the metal is likely to aim towards testing $1241 intermediate hurdle en-route the $1248 supply zone.
On the flip side, $1224 area is likely to act as an immediate support, which if broken might prompt some profit-taking and accelerate the fall further towards $1215 horizontal support.
Increased odds of no-deal Brexit, USD rebound knocks-off GBP/USD. All eyes remain on Brexit headlines, US macro data and EU Summit...
The precious metal stalled its overnight sharp retracement slide from 1-1/2 week tops and managed to find decent support/regain positive traction...
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...
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...
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...
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...
Struggles to build on overnight strong up-move despite a goodish USD rebound. Bulls tracked retracing US bond yields, tough risk-on mood...
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...
USD weakness came to a halt yesterday after the Fed's Kaplan emphasised the central bank's independence, thus reassuring markets that