Gold dips below the psychological $1,500 handle

• Bears can now approach $1,478 as the 13 August volatility spike low.
• Risks from various geopolitics settle down and gold is on the back foot.  

The price of gold is dishevelled as markets focus on the measures by central banks designed to spur growth and as risks from various geopolitics  settle down. Spot gold has dropped below the 1500 handle for the first time since late Augst, extending the losses that it took overnight.

Prices were  dropping over 0.40% and travelling  between a high of $1,515 to a low of $1,497.76, ending on Wall Street around $1,500.  December gold lost around $5.10, or 0.3%, to trade at $1,510.40 an ounce after trading as high as $1,523.80 – extending the 0.9% loss from last week.  

Eyes on the bond market and equities

Traders are keeping a close eye on the US 2-year treasury yields rose from 1.53% to 1.59%, while the 10-year yield rose from 1.56% to 1.64%, despite no obvious fresh catalysts spurring theoves, just an overall better risk sentiment being felt – Dow booked its fourth gain in a row, rising 38.05 points, or 0.1%, to 26,835.51. Meanwhile, however, markets are pricing 25bp of easing at the 19 September.

Gold levels

While pressured below the  21-day moving average as well as the 23.6% Fibonacci (Fibo) retracement of the July lows to recent swing highs, bears can now approach 1,478 as the 13 August volatility spike low which guards the 19 July swing highs at 1,452.93. 1,550 guards prospects for 1,590 as the 127.2% Fibo target area. Thereafter, bulls can target the 78.6% Fibo of the 2011 to YTD range located in the 1,730s ahead of the triple-top peaks of the 1,800s.