Spot gold was flat at $1,501 per ounce as of 0620 GMT.
On Wednesday, prices soared over 2% to breach the $1,500 barrier for the first time since April 2013.
U.S. gold futures were down 0.3% at $1,515.20 an ounce.
· “The moves by central banks around the world are very important, and the focus we are getting on currency markets for potential for competitive devaluation remains supportive for gold,” said Michael McCarthy, chief market strategist, CMC Markets.
“There is an important resistance zone around $1,525. Given the speed of the rise in gold prices, we may have to see some period of consolidation before there is any test of that higher level.”
· Chicago Fed President Charles Evans signalled on Wednesday he was open to lowering rates to bolster inflation and counter risks to economic growth.
Interest rates futures suggested traders are building bets that the Federal Reserve would cut rates three more times by this year-end to avert a recession.
· In a further indication of an economic downturn, central banks in New Zealand, India and Thailand surprised markets with aggressive easings on Wednesday. The Philippines central bank is expected to cut rates later today.
· Meanwhile, the dollar index inched down 0.1% after falling to a two-week low earlier this week. U.S. 10-year Treasury yields dropped further below three-month rates, an inversion that has reliably predicted recessions in the past.
· Asian shares were trying to rally on Thursday as Beijing reported better trade numbers while also limiting the fall in its yuan, offering temporary relief from fears of a global currency war.
· “We still think that gold could likely push higher over the short-term,” INTL FCStone analyst Edward Meir said in a note.
“But it will have to tee off from more turmoil in the financial markets as opposed to the relative calm we have been seeing over the past 48 hours.”
· Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 1.02% to 845.42 tonnes on Wednesday from Tuesday.
· Spot gold may gain further to $1,524 per ounce, as it has cleared a resistance at 1,497, according to Reuters technical analyst Wang Tao.
· Gold technical analysis: All eyes on 23.6% retracement target
Trade war angst is here to stay and the bulls are in control. On a breach of higher grounds, bulls will have eyes on the 127.2% Fibo target up at 1,560 and then the Oct 2012 highs at 1795 come into the picture on the wide. For now, the downside is playing out towards 1485 and the 23.6% Fio retracement target.
On the upside, and on the very wide, the 1800s come as the 2011 highs and the price has touched the 61.8% Fibo retracement of those highs to the late 2015 swing lows. The 1528/30s are a prior support which could come in as the next major upside target where the price would be expected to hold initial tests. The 1430s come as a likely support area below a retracement of the 23.6% Fibo in the 1450s.
· KITCO | Gold Rockets Higher As World Gov't Bonds Yields Plummet
Technically, December gold futures prices closed nearer the session high today. The bulls have the strong overall near-term technical advantage. A nine-week-old uptrend is in place on the daily bar chart. There are still no early chart clues to suggest a market top is close at hand. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,550.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,467.00. First resistance is seen at today’s high of $1,522.70 and then at $1,525.00. First support is seen at $1,500.00 and then at today’s low of $1,484.30. Wyckoff's Market Rating: 9.5
· Daily FX | GOLD TECHNICAL ANALYSIS
XAU/USD just took out April 2013 highs at 1485 with gold being unable to maintain gains above 1500. Using Fibonacci extensions, the next area of resistance appears to be forming under the 78.6% level at 1517.In the event of a turn lower, the midpoint of the extension at 1468 could hold as near-term support. But the dominant uptrend could be maintained by potential rising support from the end of May.
· Gold is just about to enter into a new bull rally cycle, said Gerald Celente, Publisher of The Trends Journal.
“The next breakout point had to be $1,450. I believe when it breaks beyond that, it’s going to spike for the $2,000 mark,” Celente told Kitco News.
Celente attributes loose monetary policies around the world for this new rally.
· The yellow metal has strong momentum behind its latest move above $1,500 an ounce — the highest level since 2013, according to analysts.
Breaching this key level opens a door to reaching the $1,550 mark quicker than expected, London Capital Group head of research Jasper Lawler told Kitco News on Wednesday.
At the $1,500 level, gold is pricing in a lot of the positive macroeconomic news, but it doesn’t rule out a move higher, said BMO Capital Markets managing director of commodities research Colin Hamilton.
“We are trading the top range of the range … From a macroeconomic perspective, there will be support there over the coming months [and] $1,550 may come sooner rather than later because we have a bit momentum coming through. It is possible, but I’d question whether that is sustainable,” Hamilton said.
More sustainable longer-term levels for gold, however, are between the $1,375-$1,475 range, added Hamilton.
· Elsewhere, silver rose 0.1% to $17.11 per ounce, hovering near a more than one-year high touched in the previous session.
Platinum was up 0.5% to $865.84, and palladium climbed 0.7% to $1,424.64 an ounce.
Reference: Reuters, DailyFX, FX Street, Kitco
Thai
Eng