Gold price quickly reversed a mid-European session dip to the $1534 region and moved back into the positive territory post-US GDP, albeit lacked any strong follow-through.
29 August 2019, OctaFX – Spot failed to capitalize on the early uptick to the $1550 area and witnessed some pullback in reaction to positive trade-related comments the Chinese Commerce Ministry spokesman, which triggered a fresh wave of global risk-on trade and dented Gold’s perceived safe-haven status.
Gold price fundamental highlights
Improving global risk sentiment was further reinforced by a solid intraday up-move in the US Treasury bond yields, which further collaborated towards driving flows away from the non-yielding Gold and collaborated to the intraday slide, albeit a subdued US Dollar helped limit the downfall.
Meanwhile, Thursday’s mostly inline release of the US GDP report, showing that the economy expanded at an annualized pace of 2.0% during the second quarter of 2019, did little to impress the USD bulls and seemed to be the only factor behind Gold’s latest leg of a sudden pick up in the last hour or so.
Gold price technical analysis
From a technical perspective, bearish RSI divergence on daily charts now seemed to suggest that Gold might have already topped out in the near-term, which might prompt some aggressive long-unwinding trade and thus, warrant some cautions before initiating any aggressive bullish bets.
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