Gold climbs to multi-day tops, near $1190 level
| • Last week’s goodish rebound seemed unaffected by easing US-China trade tensions.
• Renewed USD buying/Fed rate hike prospects to keep a lid on any meaningful up-move.
Gold edged higher at the start of a new trading week and is currently placed at multi-day tops, around the $1187-88 region.
The commodity was seen building on last week's goodish recovery move from over 19-month low level of $1160 and seemed rather unaffected by optimism led by reports of a fresh round of US-China trade talks. Trade war fears eased further on reports that the US President Donald Trump and Chinese leader Xi Jinping may meet in November to resolve intensifying trade disputes between the world's two largest economies.
Meanwhile, a modest retracement slide in the US Treasury bond yields remained supportive of the positive tone, albeit some renewed US Dollar buying interest and risk-on mood might keep a lid on any further up-move.
This coupled with growing conviction that the Fed will stick to its gradual rate hike path might further contribute towards capping gains for the non-yielding metal. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the commodity might have bottomed out in the near-term.
Moving ahead, this week's release of the latest FOMC meeting minutes and the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium will now play an important role in determining the pair's next leg of a directional move for the non-yielding yellow metal.
Technical levels to watch
Any further up-move is likely to confront resistance near the $1192-93 region ahead of the key $1200 psychological mark. On the flip side, $1181-80 zone now seems to protect the immediate downside and is followed by support near the $1174-73 region.
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