Home Gold struggles to extend the bounce above $ 1200
FXStreet News

Gold struggles to extend the bounce above $ 1200

  • Recovery fizzles as USD buying gathers steam in Europe.
  • But downside capped amid weaker T-yields and trade concerns.

Gold prices on Comex stalled its overnight recovery mode post the Fed outcome and dropped back below the $ 1200 level, before recovering back above the last.

Focus on Powell’s speech

Despite the bounce, the yellow metal appears to struggle, as the US dollar remains broadly bid following the hawkish comments from the Fed President Powell and bullish US economic projections.    

However, negative Treasury yields combined with the looming US-Sino trade concerns continue to keep the downside cushioned, with the bulls guarding the $ 1195 support area.

In the day ahead, the USD price-action will continue to have a major bearing on the prices, as markets await the US Q2 Final GDP, durable goods and Powell’s speech for near-term trading opportunities.

Gold Technical Levels

Higher Side Levels: 1210 (round number), 1215.80 (Sept 21 high), 1217 (Aug 28 high).

Lower Side Levels: 1194.70 (Sept 27 low), 1190.40 (Sept 11 low), 1184.40 (mid-Aug low).

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.