Gold consolidates in a range, flat-lined around $1475 level
|- Gold weighed down by trade optimism-led risk-on mood.
- Any uptick in the US bond yields further capped the upside.
- The prevalent USD selling bias helped limit the downside.
Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.
A combination of diverging forces failed to provide any meaningful impetus or assist the precious metal to build on last week's positive move to over one-month tops, back closer to the key 100-day SMA strong hurdle.
The limited trade deal between the world’s two largest economies remained supportive of the prevalent risk-on mood across global financial markets and was seen weighing on traditional safe-haven assets, including gold.
It is worth recalling that the "phase one" US-China trade deal was announced last week, under which the US decided to not to pursue a new round of tariffs that were due to go into effect on Sunday and China, in turn, said it would substantially increase agricultural purchases.
Improving global risk sentiment was further reinforced by a modest pickup in the US Treasury bond yields, which further played its part towards keeping a lid on any attempted bullish move for the non-yielding yellow metal.
The negative forces, to a larger extent, were offset by persistent selling bias surrounding the US dollar, which eventually extended some support to the dollar-denominated commodity and led to a subdued/range-bound trading action on the first day of a new trading week.
Moving ahead, there isn't any major market-moving economic data due for release on Monday and hence, the USD price dynamics, along with the broader market risk sentiment might continue to act as key drivers of the commodity's momentum on Monday.
Technical levels to watch
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