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Gold clocks five-month high in Asia

  • Gold jumped to $1,251 in Asia - the highest level since July 11.
  • Rising evidence of a global growth slowdown, trade fears, and the resulting risk aversion is likely helping gold report gains.
  • Talk of Fed rate pause in 2019 is likely adding to the bullish tone around the yellow metal.

Gold rose to a six-month high of $1,251, having closed higher by 2.10 percent last week – its biggest weekly gain since March.

The safe-haven yellow is likely cheering an increasing evidence of a global growth slowdown and rising odds of Fed rate pause in 2019.

To start with, a section of the US yield curve inverted last week, triggering recession fears, which were bolstered by Friday's weaker-than-expected non-farm payrolls and wage growth release.

Further, China's export growth slowed sharply in November, highlighting a weakening global demand, Meanwhile, imports growth also decelerated, indicating anemic domestic demand.

Notably, the US-China trade war may escalate and the global outlook may further worsen in 2019 if the 90-day truce fails to produce a breakthrough deal.  More importantly, the odds of Fed rate pause in 2019 are rising amid the global growth slowdown and the resulting risk aversion.

So, for gold, the path of least resistance is to the higher side. That, however, may change if there the incoming US data pushes up Treasury yields and the US dollar.

At press time, gold is trading at $1,249 and the Dollar Index is trading at 96.41 – down 1.3 percent from the recent high of 97.69.  

Gold Technical Levels

XAU/USD

Overview:
    Today Last Price: 1250.16
    Today Daily change: 1.7e+2 pips
    Today Daily change %: 0.136%
    Today Daily Open: 1248.46
Trends:
    Previous Daily SMA20: 1224.26
    Previous Daily SMA50: 1224.01
    Previous Daily SMA100: 1211.43
    Previous Daily SMA200: 1232.57
Levels:
    Previous Daily High: 1250.1
    Previous Daily Low: 1228.1
    Previous Weekly High: 1250.1
    Previous Weekly Low: 1221.39
    Previous Monthly High: 1237.4
    Previous Monthly Low: 1196.4
    Previous Daily Fibonacci 38.2%: 1241.7
    Previous Daily Fibonacci 61.8%: 1236.5
    Previous Daily Pivot Point S1: 1234.34
    Previous Daily Pivot Point S2: 1220.22
    Previous Daily Pivot Point S3: 1212.34
    Previous Daily Pivot Point R1: 1256.34
    Previous Daily Pivot Point R2: 1264.22
    Previous Daily Pivot Point R3: 1278.34

 

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