Gold holds weaker near 3-week lows ahead of US data
| • A goodish uptick in the US bond yields/USD continues exerting pressure.
• Weaker sentiment around equities fails to revive safe-haven demand.
• US ISM PMI eyed for some short-term trading impetus.
Gold extended its consolidative price action through the early NA session and remained confined in a narrow trading range around the $1275 region.
With the US tax reform legislation still on the key agenda, a combination of diverging factors has failed to provide any fresh impetus to the precious metal. A fresh leg of an upsurge in the US Treasury bond yields, coupled with a modest pickup in the US Dollar demand continued exerting some downward pressure on the non-yielding commodity.
The downside, however, might remain cushioned on the back of reviving safe-haven demand amid the prevalent negative trading sentiment around European equity markets, and indications of a follow through selloff in the tech-heavy Nasdaq Composite Index.
Today's US economic docket highlights the release of ISM non-manufacturing survey for November, which would influence the USD price dynamics and infuse some momentum around dollar-denominated commodities - like gold.
Technical levels to watch
Immediate support is pegged near $1270 level, which if broken is likely to accelerate the slide towards the very important 200-day SMA support near the $1266 region before the metal eventually drops to $1260 support.
On the upside, momentum beyond $1277 area could get extended towards $1281 resistance, above which the commodity seems to head back towards testing 100-day SMA barrier near the $1286-87 region.
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.