Gold is under pressure in Asia, having witnessed range breakdown on Jan. 18. The International Monetary Fund (IMF) trimmed global growth forecasts on Monday. Sino-US trade talks are making little progress on key issues. The S&P 500 futures are reporting losses at press time. Even so, the yellow metal is struggling to find bids.
Gold is currently trading at $1,278; down 0.37 percent on the day.
The yellow metal charted a bearish-lower high at $1,283.50 yesterday, validating the range breakdown witnessed on Friday despite global growth concerns and the fading prospect of a breakthrough US-China trade deal.
The IMF lowered estimates for growth in 2019 by 0.2 percentage points to 3.5%, its second downward revision, this time on account of weakness in Germany and Turkey, according to CNN. The agency also cited trade war and Brexit as risks to the global economy.
Notably, the Sino-US trade war is far from over. Moreover, both sides have made little or no progress on key issues like Chinese theft of American intellectual property.
Hence, it is not surprising to see the futures on the S&P 500 trade in the red. As of writing, the futures are down 0.54 percent. Major Asian indices like Nikkei, S&P ASX 200, Hang Seng and Shanghai Composite are also reporting losses.
Even so, the safe haven yellow metal is under pressure. So, it could be argued that the technical factors are overshadowing the fundamentals. As a result, the metal risks falling to $1,266 (23.6% Fib R of Aug low/Jan high).
Gold Technical Levels
XAU/USD
Overview: Today Last Price: 1278.9 Today Daily change: 2.90 pips Today Daily change %: 0.23% Today Daily Open: 1276Trends: Daily SMA20: 1284.24 Daily SMA50: 1254.11 Daily SMA100: 1233.77 Daily SMA200: 1228.68Levels: Previous Daily High: 1283.63 Previous Daily Low: 1275.9 Previous Weekly High: 1295.9 Previous Weekly Low: 1276.2 Previous Monthly High: 1284.7 Previous Monthly Low: 1221.39 Daily Fibonacci 38.2%: 1278.85 Daily Fibonacci 61.8%: 1280.68 Daily Pivot Point S1: 1273.39 Daily Pivot Point S2: 1270.78 Daily Pivot Point S3: 1265.66 Daily Pivot Point R1: 1281.12 Daily Pivot Point R2: 1286.24 Daily Pivot Point R3: 1288.85
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