something interesting

<  BACK TO Market Analysis

Gold trades with modest gains, just above $1700 mark

Gold_trades-modest-gains_Forex_FXPIG
  • Gold gained some positive traction on Monday, albeit lacked any strong follow-through.
  • A pickup in the USD demand, the prevalent risk-on mood kept a lid on the early uptick.
  • Speculations for negative Fed rates should help limit any meaningful slide for the metal.

Gold struggled to capitalize on its early uptick, albeit has managed to hold with modest daily gains just above the $1700 mark.

Following the previous session's pullback from two-week tops, the precious metal regained some positive traction on the first day of a new trading week amid worries over the second wave of coronavirus infections.

However, a combination of negative factors – including a pickup in the US dollar demand and the prevalent risk-on mood – held investors from placing any aggressive bets and kept a lid on any further gains for the metal.

As investors looked past Friday's disastrous US NFP report, a goodish pickup in the US Treasury bond yields revived the greenback demand and was seen as a key factor that undermined demand for the dollar-denominated commodity.

This comes on the back of the latest optimism about the re-opening of economies in some part of the world. Adding to this, easing US-China tensions further boosted investors' confidence and dented the precious metal's safe-haven status.

Meanwhile, the downside is likely to remain cushioned amid speculations that the Fed might be forced to push interest rates below zero, which should continue to attract some dip-buying around the non-yielding yellow metal.

From a technical perspective, the commodity on Friday faced rejection near a multi-week-old descending trend-line. This makes it prudent to wait for a convincing break through the mentioned barrier before placing fresh bullish bets.

In the absence of any major market-moving economic releases, the broader market risk sentiment and the USD price dynamics will continue to play a key role in influencing the commodity's momentum/produce some short-term trading opportunities.

Technical levels to watch

Any meaningful slide below the $1700 mark is likely to find decent support and remain limited near the $1685 horizontal support, which if broken might prompt some aggressive technical selling. On the flip side, immediate resistance is pegged near the $1715 region, above which the commodity is likely to aim back towards testing the $1722-24 supply zone.

Source: fxstreet

  • Gold gained some positive traction on Monday, albeit lacked any strong follow-through.
  • A pickup in the USD demand, the prevalent risk-on mood kept a lid on the early uptick.
  • Speculations for negative Fed rates should help limit any meaningful slide for the metal.

Gold struggled to capitalize on its early uptick, albeit has managed to hold with modest daily gains just above the $1700 mark.

Following the previous session's pullback from two-week tops, the precious metal regained some positive traction on the first day of a new trading week amid worries over the second wave of coronavirus infections.

However, a combination of negative factors – including a pickup in the US dollar demand and the prevalent risk-on mood – held investors from placing any aggressive bets and kept a lid on any further gains for the metal.

As investors looked past Friday's disastrous US NFP report, a goodish pickup in the US Treasury bond yields revived the greenback demand and was seen as a key factor that undermined demand for the dollar-denominated commodity.

This comes on the back of the latest optimism about the re-opening of economies in some part of the world. Adding to this, easing US-China tensions further boosted investors' confidence and dented the precious metal's safe-haven status.

Meanwhile, the downside is likely to remain cushioned amid speculations that the Fed might be forced to push interest rates below zero, which should continue to attract some dip-buying around the non-yielding yellow metal.

From a technical perspective, the commodity on Friday faced rejection near a multi-week-old descending trend-line. This makes it prudent to wait for a convincing break through the mentioned barrier before placing fresh bullish bets.

In the absence of any major market-moving economic releases, the broader market risk sentiment and the USD price dynamics will continue to play a key role in influencing the commodity's momentum/produce some short-term trading opportunities.

Technical levels to watch

Any meaningful slide below the $1700 mark is likely to find decent support and remain limited near the $1685 horizontal support, which if broken might prompt some aggressive technical selling. On the flip side, immediate resistance is pegged near the $1715 region, above which the commodity is likely to aim back towards testing the $1722-24 supply zone.

Source: fxstreet

lastest Articles

Market Analysis
Forex Today: Vaccine, Opening optimism overwhelms dollar, Sino-American tensions ignored (for now)
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: At risk of extending its slide
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Russia to temporarily ban oil product imports – Interfax
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar in demand amid high Sino-American tensions, thin liquidity expected
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead – Reopening Momentum and China in focus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BOE’s Ramsden: It is reasonable to have an open mind on negative rates
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC minutes: Ready to pump in extra stimulus – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil prices tumble alongside global equities amid fears about China turbulence
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
PBoC keeps extra easing on the table – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Dollar Index Price Analysis: Door open to further retracements
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price Forecast: XAU/USD Rally Loses Steam
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Crude Oil Stocks Change at -5 million barrels in week ending May 15
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold: Investors continue buying the yellow metal
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar decline resumes after breather due to vaccine doubts, Fed remains in focus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Powell speech: Continuing to look at ways to accommodate additional borrowers
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Reasons for the US dollar weakness
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price Analysis: Needs to recapture $1,747 to resume rally
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
After two months, regulators remove short-selling bans
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: The downside is more appealing than the upside
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Play down Powell and risk-on, markets also ignore Sino-American tensions, gold shines
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead – More Easing on the Way
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
UK: Major downgrade to the GDP forecast – ABN Amro
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
RBNZ: Rates on hold, QE expanded – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar dominates after Powell's push back, darkening global clouds, ahead of claims
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EIA: US Crude Oil Stocks Change at -0.7 million barrels in week ending May 8
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Breaking: FOMC Chairman Powell says additional policy measures may be needed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Euro Latest: EUR/USD Could Break Lower, Powell Speech in Focus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil storage crisis fading on global production cuts and recovering demand
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Fed's Bullard: Cannot continue economic shutdown for too long
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price Analysis: Sustains the bounce above $1700 ahead of US CPI
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold trades with modest gains, just above $1700 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Dollar in Favour vs EUR/USD & GBP/USD, CHF Bulls Rise - COT Report
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Markets shrug off horrible US jobs data, Bitcoin tumbles ahead of halving, lockdowns eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead – Reopening economies appear to be the only trade in town
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold retreats from daily highs, steadies above $1,710
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil: A drop in value does not mean it is a bargain
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
NFP: The worst report is the best for the US dollar
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Australia heads for worst GDP contraction since at least 1960
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold rallies to fresh highs for the month as US dollar and US yields sink
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Fed's Kashkari: True unemployment rate is around 23-24%
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Dollar Index Price Analysis: Increasing bets for a retest of 101.00
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Crude Oil Futures: Gains remain on the table near-term
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Trump stokes tensions with China, euro licking its wounds, ADP Non-Farm Payrolls eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week ahead – Stimulus trade losing momentum?
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Breaking: EUR/USD breaks above 1.10 on dollar weakness, levels to watch
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Canada: Markit Manufacturing PMI slumps to 33 in April vs. 41.5 expected
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Fed's Kaplan: Interest rates will stay low for long
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Loss of confidence in the currency must rise gold and cryptocurrencies
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Fed: Dollar's risk status intact
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Trump lifts dollar after the Fed fallout, Bitcoin blasts $9,000, ECB, US jobless claims eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price Forecast: XAU/USD holds above $1700/oz after disappointing US GDP
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil New York Price Forecast: WTI capped below 18.80 level
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
S&P 500: Five factors to stop the recovery
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil Price Analysis: WTI stays under pressure, approaching $10.00 a barrel
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold holds steady above $1700 mark, lacks follow-through amid upbeat market mood
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
NZD/USD bears on the offensive on talk of negative rates in New Zealand
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EU Commission to temporarily ease rules on leverage ratio calculation to help banks – Reuters
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC: Negative rates are off the table – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Dollar Bears Slowing Down, GBP/USD Flips to Net Short - COT Report
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead – Georgia reopening fallout, three big rate decisions, and big Tech earnings
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Futures: Room for extra gains
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil: Signs of stress remain
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: Break below 1.0770 is proved
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY recovers from three-year lows on Merkel’s comments
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Will Crude Oil Trade Negative Again, and Is it Really Worth Less Than Nothing?
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: Three reasons to favor the fall
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/GBP looks to close below 0.8800 on broad euro weakness
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD Forecast: Canadian Dollar Recovers with Crude Oil Price
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Company News
Oil CFD Margin Requirements
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price Remains Volatile as Risk Assets Begin to Crumble
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Open – Violent oil trade resumes, Stocks ready to fall, Yen soars on risk aversion, Gold tumbles on German optimism
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Brent Crude Oil Prices Fall 20% As Panic Sweeps The Market
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead – Lockdown easing spurs optimism
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil slides below $20 a barrel after IEA warns of worst-drop in demand this year due to pandemic
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold: Looking for new highs above $1921 – Credit Suisse
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY: Capped by Fibonacci resistance at 107.70
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price Analysis: Path of least resistance remains to the upside after topping $1,730
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: The next move is lower back to 1.05
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
BoJ's Kuroda: BoJ will ease without hesitation if needed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Crude Oil Futures: Potential for further weakness
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Price Analysis: Focus remains intact on 1.0990
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead – Dollar vulnerability on overwhelming central bank action and virus optimism
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Company News
Smart Alpha PAMM -Machine Learning? Seriously?
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar depressed amid dull Good Friday, G20 Energy Summit, US CPI in focus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOMC: The Fed will act fact and meaningfully again if the need arises – BMO
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Company News
Easter Trading Schedule
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Guide to six critical coronavirus-linked market movers, fasten your seat belts
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil: Significant surplus to stay
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold holds steady above $1650 level, lacks follow-through amid stronger USD
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB told ministers EZ financing needs to address coronavirus crisis could be up to EUR1.5 trillion
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Price Analysis: Ample liquidity opens door to higher levels
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD May Fall on Covid-19 Eurozone Finance Minister Meeting
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Dollar falls, gold up amid upbeat COVID-19 data, Boris' ICU stay causing concerns
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold Futures: Extra gains losing traction
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Markets cheering upbeat European coronavirus news, pound worried about Boris, oil eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Week Ahead – World battles spread of Covid-19 and its economic destruction, a bigger OPEC +cut deal, and big bank stress tests
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: Five reasons to drag the pair down
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD: Bearish sign
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
S&P: Major Aussie banks not at risk of downgrade amid pandemic
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: New quarter, same market gloom as coronavirus spreads, critical US data eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613