Gold retreats close to $1,322/oz from daily highs

• Gold retreats from daily highs towards 1,3200 as bond yields tick higher.
• The recent bull move in Gold is attributed to US Iran nuclear deal withdrawal and USD weakness.

Gold is trading at around $1,322 a troy ounce virtually unchanged on Friday.

Earlier in the day in the European session Gold had a boost on the back of the US Dollar weakness and flirted with the 1,326 level. However, the American session brought gold bull’s expectations down by bringing the market back to the 1,320 region as the US benchmark Treasury yields ticked higher towards 2.98%.

This week the metal saw increasing demand as the US pulled out of the Iran nuclear deal and the US dollar bull run is taking a breather. Last week’s Non-Farm Payroll and Thursday’s subdued inflation in the US denied the recent enthusiasm in the greenback as the prospects of four rate hikes by the Fed in 2018 are starting to vanish. Gold is usually inversely correlated to USD. 

Additionally, the 10-year Treasury yield has been declining since Wednesday, however, it is ticking up on Friday’s trading. As bond yields are declining usually investors turn to gold as a safe-haven asset. 

Gold 4-hour chart 

The medium-term trend is bullish with the market trading above its 50 and 100-period simple moving averages (SMA) on the 4-hour chart but below the 200-period SMA. Immediate support is seen at the 1,320 psychological level and at 1,315 important supply/demand level. To the upside, if bull manage to break the 1,326 immediate resistance, the next scaling point is seen at 1335 previous swing low (April 12)