Gold eases from multi-day tops, still well bid above $1900 mark
|- Gold regained positive traction on Monday amid some heavy selling around the USD.
- The risk-on mood, surging US bond yields kept a lid on any strong positive momentum.
Gold spiked to multi-day tops, around the $1918 region during the early North American session, albeit quickly retreated around $10 thereafter.
The precious metal managed to regain some positive traction on the first day of a new trading week and built on last week's rebound from the $1882 region. The uptick marked the third day of a positive move in the previous four and was exclusively sponsored by the emergence of some fresh selling around the US dollar, which tends to benefit the dollar-denominated commodity.
However, the upbeat market mood – as depicted by a positive opening in the US equity markets – undermined demand for traditional safe-haven assets and kept a lid on any strong gains for the XAU/USD. The global risk sentiment was supported by reviving hopes for additional US fiscal stimulus and expectations of a COVID-19 vaccine by the end of this year.
The risk-on mood was reinforced by a strong intraday upsurge in the US Treasury bond yields, which further collaborated towards capping gains for the non-yielding yellow metal. Nevertheless, the XAU/USD has still managed to hold with modest daily gains and was last seen trading just below the $1910 region.
In the absence of any major market-moving economic releases from the US, the broader market risk sentiment will influence the safe-haven demand for the XAU/USD. This, along with the USD price dynamics might further assist traders to grab some meaningful opportunities.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.