Gold finds some support near $1400 mark, lacks follow-through
|- US durable goods orders miss consensus estimates; previous month’s readings were also revised lower.
- The USD fails to preserve intraday gains on the back of dismal data and provided a minor lift in the last hour.
- The prevailing risk-on mood undermines demand for traditional safe-haven assets and capped the bounce.
Gold held on to its weaker tone through the early North-American session, albeit pared a part of its intraday slide to the $1400 neighbourhood post-US economic data.
The precious metal remained under some heavy selling pressure through the major part of European trading session on Wednesday and extended previous session's sharp pullback from multi-year tops, triggered by not so dovish comments by influential FOMC members.
This coupled with positive trade-related remarks by the US Treasury Secretary Mnuchin - though were rectified immediately, weighed on the commodity's perceived safe-haven status, further collaborating to the intraday slide back closer to the key $1400 psychological mark.
Meanwhile, the US Dollar failed to capitalize on its intraday up-move and started losing traction following the latest disappointment from US economic data - showing that durable goods orders fell by 1.3% in May, which eventually underpinned demand for the dollar-denominated commodity.
The recovery, however, lacked any strong follow-through amid positive mood around equity markets, though the downside now seems limited as investors might now refrain from placing any aggressive bets ahead of the Trump-Xi meeting on the sidelines of G20 summit later this week.
Hence, it would be prudent to wait for a sustained break through the mentioned handle before confirming that the commodity might have already formed a temporary top and positioning for any further corrective slide in the near-term.
Technical levels to watch
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