Gold mildly weaker, geopolitical tensions limiting downslide
|Gold failed to build on previous session's tepid recovery move from 1-1/2 week lows and traded with negative bias for the second straight session.
Global risk-on mood, in wake of market friendly outcome from the first round of French Presidential election, continues to weigh on the precious metal's safe-haven demand. The prevalent buoyant investors' sentiment is clearly reflected by strong performance in equity markets and is also denting on the yellow metal's investment appeal.
Moreover, a follow through recovery in the US treasury bond yields, resulting into a modest US Dollar up-tick, further drove flows away from dollar-denominated commodities - like gold.
• US Dollar up smalls around 99.00
Despite of all the negative factors, the commodity remained within previous session's trading range amid uncertainty with regard to the US debt ceiling negotiations and the ongoing geopolitical tensions in the Korean peninsula.
Later during the NA session, the US economic docket, featuring the release of CB's Consumer Confidence Index and New Home Sales data, would now be looked upon for some fresh trading impetus.
Technical levels to watch
Weakness below $1270 level might continue to find support near $1265 area, below which the corrective slide could get extended back towards the very important 200-day SMA support near $1255 region.
On the upside, any recovery attempts beyond $1278-80 area now seems to confront resistance near $1285 level, which if cleared could lift the metal beyond multi-month highs resistance near $1295 region towards testing the key $1300 round figure mark.
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