Gold continues to find some support near $1500 mark
|- Sliding US bond yields undermined the USD and helped gain some traction on Thursday.
- Renewed US-China trade optimism weighed on safe-haven assets and capped gains.
Gold failed to capitalize on its early uptick and dropped to fresh session lows in the last hour, albeit once again managed to find decent support near the key $1500 psychological mark.
A subdued US Dollar demand - weighed down by sliding US Treasury bond yields - extended some support and provided an intraday lift to the dollar-denominated commodity on Thursday. The uptick, however, lacked any strong bullish conviction, rather was quickly sold into amid the prevailing risk-on mood, which tends to drive flows away from traditional safe-haven assets - including Gold.
Trade optimism capped the attempted up-move
The global risk sentiment remained well supported by renewed optimism over a possible resolution to the prolonged US-China trade dispute. Hopes of a meaningful progress on the US-China trade deal reignited on Wednesday after Trump told reporters in New York that both the sides are having some very good conversations on trade and an agreement could happen sooner than anyone thinks.
On the economic data front, the final US GDP print came in to show that the economic growth during the second quarter of 2019 stood at 2.0% annualized. The reading confirmed a sharp deceleration as compared to the previous quarter’s 3.1% growth but matched the original estimates, and hence, did little to provide any meaningful impetus.
Meanwhile, the commodity continued finding decent support near the $1500 mark, which should now act as a key pivotal point as market participants now look forward to scheduled speeches by influential FOMC members - St. Louis Fed President James Bullard and the Fed Governor Richard Clarida - for some meaningful trading impetus.
Technical levels to watch
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