Gold corrects from 6-1/2 month tops, slides to $1290 area
• Strong opening across European bourses prompts some profit-taking.
• Downside remains cushioned amid the prevalent USD selling bias.
• Focus remains on today’s important release of the US monthly jobs data.
Gold started correcting after refreshing 6-1/2 month tops and is currently placed at session lows, around the $1292-91 region.
The overnight news that Apple lowered its quarterly sales forecast, which followed the recent weakness in Chinese macro data fueled concerns over a potential downturn in the global economy and continued driving safe-haven flows, lifting the precious metal to its highest level since mid-June.
The positive factor, to some extent, was negated by some renewed optimism over a possible resolution to the US-China trade disputes. This coupled with a strong rebound in global equity markets and a goodish pickup in the US Treasury bond yields kept a lid on any strong follow-through for the non-yielding yellow metal.
The downside, however, is likely to remain cushioned amid the prevailing bearish sentiment surrounding the US Dollar, which tends to underpin demand for the dollar-denominated commodity, and ahead of today's key release of the closely watched US monthly jobs report, popularly known as NFP.
Technical levels to watch
Today Last Price: 1291.9
Today Daily change: -2.9e+2 pips
Today Daily change %: -0.222%
Today Daily Open: 1294.77
Previous Daily SMA20: 1261.04
Previous Daily SMA50: 1237.48
Previous Daily SMA100: 1223.18
Previous Daily SMA200: 1229.23
Previous Daily High: 1294.77
Previous Daily Low: 1282.44
Previous Weekly High: 1284.7
Previous Weekly Low: 1258.1
Previous Monthly High: 1284.7
Previous Monthly Low: 1221.39
Previous Daily Fibonacci 38.2%: 1290.06
Previous Daily Fibonacci 61.8%: 1287.15
Previous Daily Pivot Point S1: 1286.55
Previous Daily Pivot Point S2: 1278.33
Previous Daily Pivot Point S3: 1274.22
Previous Daily Pivot Point R1: 1298.88
Previous Daily Pivot Point R2: 1302.99
Previous Daily Pivot Point R3: 1311.21