Gold sits near multi-year tops, around $1775 level amid softer risk tone
|- Gold remains well supported by concerns about rising coronavirus cases globally.
- A turnaround in the risk sentiment further underpinned the safe-haven commodity.
- A modest USD uptick might turn out to be the only factor capping gains for the metal.
Gold traded with a mild positive bias through the early European session and was last seen trading near multi-year tops, just BELOW $1775 level.
Despite the latest optimism over a sharp V-shaped global economic recovery, investors remain concerned about the rising number of coronavirus cases globally. This coupled with a turnaround in the global risk sentiment – as depicted by a sharp fall in the equity market – extended some support to the safe-haven precious metal.
The anti-risk flow was reinforced by an intraday pullback in the US Treasury bond yields, which further benefitted the non-yielding commodity. However, slightly overbought conditions kept a lid on any strong gains amid a modest pickup in the US dollar demand, which tends to undermine demand for the dollar-denominated commodity.
Looking at the technical picture, the metal has already confirmed a near-term bullish breakout from the recent trading range held since mid-April. This, in turn, supports prospects for a further near-term appreciating move. Hence, any corrective slide might still be seen as a buying opportunity amid absent relevant market-moving US economic release.
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.