Gold jumps to weekly tops and retreats, still well bid near $1280 level amid risk-off mood
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Gold jumps to weekly tops and retreats, still well bid near $1280 level amid risk-off mood

   “¢   The prevalent risk-off mood underpins the commodity’s safe-haven demand.
   “¢   The ongoing USD bullish run seemed to be the only factor capping further gains.

Gold built on its intraday positive move and spiked to fresh weekly tops, around the $1284 region in the last hour, albeit retreated a bit thereafter.

With investors looking past Wednesday’s release of the latest FOMC meeting minutes, which reaffirmed the central bank’s patience stance on interest rates, deteriorating global risk sentiment boosted demand for traditional safe-haven status and helped the precious metal to catch some fresh bids on Thursday.

The recent escalation in the US-China trade tensions continued weighing on investors’ appetite for perceived riskier assets and the same was evident from a fresh round of selloff across equity markets. This coupled with a sharp intraday slump in the US Treasury bond yields further benefitted the non-yielding yellow metal.  

The latest leg of a sudden upsurge during the early North-American session could further be attributed to some near-term short-covering move above 100-hour SMA, albeit the ongoing US Dollar bullish run kept a lid on any strong follow-through up-move for the dollar-denominated commodity, at least for the time being.

On the economic data front, the US initial weekly jobless claims came in better than expected and further fueled the greenback strength, lifting it beyond the 98.00 handle to near two-year tops.  Thursday’s US economic docket also features the release of manufacturing & services PMI, which might now be looked upon for fresh impetus.

Technical levels to watch


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