News

Gold retreats below $1290 as Wall Street recovers early losses

  • USD recovery weighs on XAU/USD on Thursday.
  • Wall Street gains traction following a negative opening.
  • US Dollar Index stays in green near mid-95s.

After spending the European session above the $1290 mark, the XAU/USD pair turned south and dropped to a daily low near $1288. As of writing, the pair was losing around $5 on the day at $1288.50.

Following yesterday’s sharp sell-off amid dovish Fed commentary, the US Dollar Index was able to retrace a portion of its daily drop on Thursday. However, with no fundamental catalysts driving the USD’s recovery, today’s movement looked like a technical correction and the buck is likely to stay vulnerable in the near term.

On the other hand, despite starting the day in the negative territory, major equity indexes in the U.S. were able to pare losses with the Dow Jones Industrial Average and the S&P 500 both turning green in the last hour and made it difficult for the safe-haven precious metal to stay resilient against the dollar.

Optimism surrounding the U.S. – China trade negotiations and hopes of the Fed delaying rate hikes while recognizing the negative impact of the tight monetary policy on the markets seem to be helping risk-sensitive assets continue to recover from the heavy losses they suffered in the last couple of months of 2018.

Technical levels to consider

XAU/USD

Overview:
    Today Last Price: 1288.5
    Today Daily change: -5.1e+2 pips
    Today Daily change %: -0.393%
    Today Daily Open: 1293.58
Trends:
    Previous Daily SMA20: 1269.6
    Previous Daily SMA50: 1242.3
    Previous Daily SMA100: 1226.7
    Previous Daily SMA200: 1229.12
Levels:
    Previous Daily High: 1293.95
    Previous Daily Low: 1280.29
    Previous Weekly High: 1298.42
    Previous Weekly Low: 1276.82
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Previous Daily Fibonacci 38.2%: 1288.73
    Previous Daily Fibonacci 61.8%: 1285.51
    Previous Daily Pivot Point S1: 1284.6
    Previous Daily Pivot Point S2: 1275.61
    Previous Daily Pivot Point S3: 1270.94
    Previous Daily Pivot Point R1: 1298.26
    Previous Daily Pivot Point R2: 1302.94
    Previous Daily Pivot Point R3: 1311.92

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