Gold remains depressed below $1500 mark

Gold edged lower through the early European session on Tuesday and retreated farther below the key $1500 psychological mark. The precious metal failed  |  17/09/2019 09:02
  • Resurgent USD demand exerted some intraday pressure on Monday.
  • The downside remains limited ahead of Wednesday’s FOMC decision.

Gold edged lower through the early European session on Tuesday and retreated farther below the key $1500 psychological mark.
 
The precious metal failed to capitalize on Monday's bullish gap, supported by the global flight to safety following the weekend drone attacks on two major Saudi Arabian oil installations, finally settled near the lower end of its daily trading range.
 
The US Dollar reversed an early dip and managed to regain strong intraday positive traction, which eventually turned out to be one of the key factors that exerted some downward pressure on the dollar-denominated commodity - Gold.

Awaits FOMC decision for a fresh impetus

With the greenback consolidating the overnight gains, growing concerns about a global economic slowdown extended some support to the commodity's perceived safe-haven status and helped limit the downside, at least for the time being.
 
This coupled with firming expectations that the Fed will cut rates by another 25 bps further underpinned demand for the non-yielding yellow metal, though reduced bets for more aggressive policy easing might cap any strong move up.
 
Hence, traders are likely to wait for a fresh catalyst from the highly anticipated FOMC decision, scheduled to be announced on Wednesday, before determining and positioning for the commodity's next leg of a directional move.
 
In the meantime, Gold seems more likely to remain confined in its recent trading range and continue with its consolidative price action on Tuesday amid absent relevant market moving economic releases from the US.

Technical levels to watch

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com