February 08, 2019 (PPI-OT): Gold
prices rebounded from session lows despite a rising dollar. The dollar gained
traction despite a selloff in US yields as yields in both European and the UK
declined. Sellers hit the gold market hard earlier in the session on concerns
over the weakening global economy. This news helped drive up the U.S Dollar
which led to a drop in demand for dollar-denominated gold. Prices where unable
to recapture resistance near the 10-day moving average which was former support
near 1,311. Support is seen near the January lows at 1,280. A trade through
$1331.10 will signal a resumption of the uptrend. A trade through $1281.50 will
change the main trend to down. The short-term range is $1281.50 to $1331.10.
Its retracement zone at $1306.30 to $1300.40 is support.
prices traded close to a more than one-week low on yesterday after pressured by
a stronger dollar
dollar’s strength was also capping gold’s Gains
still a lot of uncertainty in the market and that is keeping gold above $1,300
should remain in good demand, after all the political risks appear to be
gold holdings fell for a fifth straight session, shedding over 1% for the week
in what could be their worst fall since the week ended Oct.
trading close to a more than one-week low yesterday, pressured by a stronger
dollar, though concern over the Sino-U.S trade conflict and the global economy
kept prices above a $1,300 support level.
gold was steady at $1,306.21 an ounce after touching its lowest since Jan. 29
at $1,302.11. Prices fell 0.7 percent in the previous session in their biggest
one-day drop since Jan. 18. U.S gold futures were down 0.3 percent at
dollar index, which tracks the greenback against major currencies, was on
course for a sixth session of gains and trading close to a two-week high,
making bullion more expensive for holders of other currencies.
over U.S-China trade relations and the potential for another U.S government
shutdown continue to underpin interest toward $1,300 and should see supportive
price action remain over the near term.
our growth indicators are clearly seeing easing global activity and trade
volumes are being hit. That makes people cautious and could derive support for
gold around $1,300-$1,330 range.
unemployment benefits dropped from near a 1-1/2-year high last week to 234,000,
while it had forecast claims falling to 221,000. The negative trade talk
headlines saw some safe-haven buying re-emerge.
rose to its highest since late April last week after the U.S Federal Reserve
kept interest rates steady, but it has since lost ground as the dollar has
firmed. Mounting global growth worries dragged on equity markets.