Gold eases slightly from highs, trades above $1305
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Gold eases slightly from highs, trades above $1305

  • Precious metal benefits from the risk-off mood.
  • US Dollar Index stays in red below 97.
  • Wall Street looks to open modestly higher.

After taking advantage of the risk-aversion and breaking above the $1300 mark, the XAU/USD pair extended its rally and touched its highest level since March 1 $1309. However, ahead of the Wall Street’s opening bell and the data releases from the U.S., the pair eased from its highs and was last seen trading at $1307, still adding 0.4% on a daily basis.

Rising concerns over the UK crashing out of the EU without a deal and the lack of headlines suggesting that the U.S. and China are moving towards a trade deal keep the demand for safe-havens such as the precious metal strong this week. Additionally, the decisive break above the critical $1300 handle seems to have brought in technical buyers to provide an additional boost to the pair.

On the other hand, uninspiring macroeconomic data releases from the U.S. that started with last Friday’s disappointing NFP reading and was followed by yesterday’s dismal CPI figures weigh on the greenback. Ahead of the PPI and durable goods orders data, the US Dollar Index is down 0.13% on the day at 96.86.

Meanwhile, the S&P 500 Futures is up 0.3% on the day, suggesting that Wall Street could open in the positive territory. A rebound in major equity indexes in the U.S. could cap the pair’s gains in the second half of the day.

Technical levels to consider


       Daily SMA20:  1311.59
       Daily SMA50:  1303.15
       Daily SMA100:  1269.06
       Daily SMA200:  1238.14
       Previous Daily High:  1302.15
       Previous Daily Low:  1292.97
       Previous Weekly High:  1300.7
       Previous Weekly Low:  1280.1
       Previous Monthly High:  1346.85
       Previous Monthly Low:  1300.1
       Daily Fibonacci 38.2%:  1298.64
       Daily Fibonacci 61.8%:  1296.48
       Daily Pivot Point S1:  1295.46
       Daily Pivot Point S2:  1289.63
       Daily Pivot Point S3:  1286.28
       Daily Pivot Point R1:  1304.64
       Daily Pivot Point R2:  1307.99
       Daily Pivot Point R3:  1313.82



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