2023-08-04 07:05:00
International gold prices focus on support around $1929
On Friday (August 4), international gold prices continued to be under pressure and were expected to record the biggest drop in nearly six weeks. A series of solid economic data pushed U.S. bond yields to a nine-month high near 4.2%. Investors are closely watching the upcoming U.S. non-farm payrolls report. From a technical point of view, focus on support around $1929.
At 15:04 Beijing time, spot gold fell 0.06% to $1,933.14 an ounce; the main COMEX gold futures contract fell 0.03% to $1,968.2 an ounce; the U.S. dollar index rose 0.03% to 102.503.
Vandana Bharti, assistant vice president of commodities research at SMC Global Securities, said the resilience of the U.S. economy has led to growing expectations that the Federal Reserve will continue to raise interest rates, further weighing on gold.
Rising bond yields have dampened the appeal of non-yielding gold. The upcoming U.S. non-farm payrolls data at 20:30 will be the next focus for further insight into the strength of the U.S. economy.
Tim Waterer, chief market analyst at KCM Trade, said: “In order for gold prices to start to make some progress, we may need to see an adverse reaction in the dollar to the non-farm payrolls data. But at the same time, gold trading is tight, there is not much spark, mainly Because it’s losing relative yield attractiveness.”
Kelvin Wong, senior market analyst for Asia Pacific at OANDA, believes that gold’s recent key support level is $1,925. If it falls below this support level, gold prices will face the risk of a 200-day moving average of $1,895.
On the daily line, the price of gold is trading around $1929, which is the 61.8% Fibonacci retracement of the upward range from $1893 to $1987. The price of gold may stand above this price and start an upward wave III trend.
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