Gold price builds on Wednesday’s rebound from weekly lows early Thursday.
The US Dollar stays pressured alongside Treasury yields amid looming trade concerns.
Gold price bounces off 38.2% Fibo support; will it find acceptance above 50-day SMA?
Gold price extends the rebound from weekly lows of $3,283 in Asian trading on Thursday, helped by increased concerns surrounding US President Trump’s latest tariff announcements and falling US Treasury bond yields.
Gold price staged a decent comeback in Wednesday’s American trading even as risk sentiment remained slightly in a sweeter spot, courtesy of Nvidia hitting $4-trillion valuation.A broadly weaker USD, amid falling US Treasury bond yields and renewed concerns over a likely trade war, helped Gold price find its footing.
US Treasury bond yields succumbed to resurfacing economic growth concerns and strong demand for the Treasury in the $39 bln 10-year note sale.
President Trump on Wednesday issued August 1 tariff notices to seven minor trading partners, with a 20% tariff on goods from the Philippines, 30% on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25% on Brunei and Moldova.He later announced a new 50% tariff on US copper imports and a 50% duty on goods from Brazil, both effective on August 1.
Lingering trade tensions offset the hawkish Minutes of the US Fed July meeting, rendering positive for the bright metal.
The Minutes “showed that only “a couple” of Fed officials believed interest rate cuts could happen as early as this month, with most favouring reductions later this year,” per Reuters.
All eyes now remain on Trump’s tariff talks, mid-tier US economic data releases and speeches from a few Fed policymakers due later this Thursday for fresh trading directives in Gold price.
In the meantime, the sustained weakness in the US Dollar and sluggish Treasury bond yields could continue to lend support to the non-yielding Gold price.
Daily technical analysis
Despite Tuesday’s range breakdown, Gold price managed to recapture the critical 38.2% Fibo level of the April record rally at $3,297 on Wednesday, having briefly tested offers underneath that level.
The Gold price upswing could be justified by the recovery in the 14-day RSI. However, the leading indicator still holds below the midline, currently near 48.50, suggesting a lack of bullish conviction.
Therefore, buyers need to take out the support-turned-resistance of the 50-day SMA at $3,323 on a sustained basis to initiate a meaningful recovery toward the 21-day SMA at $3,346.Further up, the 23.6% Fibo level of the same advance at $3,377 could offer stiff resistance to Gold buyers.
On the other hand, a rejection at the 50-day SMA will likely reinforce selling pressure, sending Gold price back to test the 38.2% Fibo support at $3,297.
Acceptance under that level could open up additional downside toward the monthly low of $3,248.
GOLD battles 50-day SMA on the road to recovery
Gold price extends the rebound from weekly lows of $3,283 in Asian trading on Thursday, helped by increased concerns surrounding US President Trump’s latest tariff announcements and falling US Treasury bond yields.
Gold price staged a decent comeback in Wednesday’s American trading even as risk sentiment remained slightly in a sweeter spot, courtesy of Nvidia hitting $4-trillion valuation.A broadly weaker USD, amid falling US Treasury bond yields and renewed concerns over a likely trade war, helped Gold price find its footing.
US Treasury bond yields succumbed to resurfacing economic growth concerns and strong demand for the Treasury in the $39 bln 10-year note sale.
President Trump on Wednesday issued August 1 tariff notices to seven minor trading partners, with a 20% tariff on goods from the Philippines, 30% on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25% on Brunei and Moldova.He later announced a new 50% tariff on US copper imports and a 50% duty on goods from Brazil, both effective on August 1.
Lingering trade tensions offset the hawkish Minutes of the US Fed July meeting, rendering positive for the bright metal.
The Minutes “showed that only “a couple” of Fed officials believed interest rate cuts could happen as early as this month, with most favouring reductions later this year,” per Reuters.
All eyes now remain on Trump’s tariff talks, mid-tier US economic data releases and speeches from a few Fed policymakers due later this Thursday for fresh trading directives in Gold price.
In the meantime, the sustained weakness in the US Dollar and sluggish Treasury bond yields could continue to lend support to the non-yielding Gold price.
Daily technical analysis
Despite Tuesday’s range breakdown, Gold price managed to recapture the critical 38.2% Fibo level of the April record rally at $3,297 on Wednesday, having briefly tested offers underneath that level.
The Gold price upswing could be justified by the recovery in the 14-day RSI. However, the leading indicator still holds below the midline, currently near 48.50, suggesting a lack of bullish conviction.
Therefore, buyers need to take out the support-turned-resistance of the 50-day SMA at $3,323 on a sustained basis to initiate a meaningful recovery toward the 21-day SMA at $3,346.Further up, the 23.6% Fibo level of the same advance at $3,377 could offer stiff resistance to Gold buyers.
On the other hand, a rejection at the 50-day SMA will likely reinforce selling pressure, sending Gold price back to test the 38.2% Fibo support at $3,297.
Acceptance under that level could open up additional downside toward the monthly low of $3,248.
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