Gold sits at session tops, around $1314 level ahead of Fedspeak
| • A modest USD profit-taking helps regain positive traction on Tuesday.
• The up-move seemed rather unaffected by the prevalent risk-on mood.
• A pickup in the US bond yields does little to hinder the positive move.
Gold built on its steady intraday ascent and climbed to fresh session tops, around $1314 level in the last hour, recovering all of the losses recorded in the previous session.
The precious metal regained positive traction on Tuesday, marking the third day of up-move in the previous four, and was now being supported by a modest US Dollar retracement from the highest level since December.
Despite news of the deal to avert a fresh government shutdown, the greenback witnessed some profit-taking and was seen as one of the key factors boosting demand for the dollar-denominated commodity.
Meanwhile, bullish traders seemed rather unaffected by the prevalent risk-on mood, as depicted by strong gains across equity markets amid growing optimism over a possible resolution to prolonged US-China trade disputes.
Even a strong follow-through pickup in the US Treasury bond yields did little to dampen the positive mood surrounding the non-yielding yellow metal or hinder the goodish intraday up-move to $1315 supply zone.
Moving ahead, speeches by several FOMC officials, including the Fed Chair Jerome Powell, will now be looked upon for some meaningful impetus amid absent relevant market moving economic releases.
Technical levels to watch
A follow-through buying has the potential to continue lifting the commodity further towards $1321 supply zone en-route multi-month tops, around the $1325-26 region. On the flip side, $1308 level now seems to protect the immediate downside and is followed by support near the $1304-03 region and the $1300 handle.
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