Gold slides on easing geopolitical tensions, but holds above $1300 mark
|Gold traded with a slight negative bias and extended previous session's retracement from 9-1/2 month highs amid improving investors' risk appetite.
The latest geopolitical tensions between the US and N. Korea seems to have eased a bit, which is being reinforced by a risk-on rally in global equity markets and was seen weighing on the precious metal's safe-haven appeal.
Meanwhile, Tuesday's upbeat consumer confidence index, surging to a five month high in August, now seems to support the view that the US economic growth would accelerate in the second half of the year that would keep the Fed on track to deliver a third rate hike by the end of this year.
• Fed may be more cautious, but unlikely to change course - AmpGFX
Hence, a goodish pickup in the US Treasury bond yields, underpinning the US Dollar demand was also seen denting demand for non-yielding/dollar-denominated yellow metal.
Despite the pullback, the metal has managed to hold its neck above the $1300 mark as investors remained cautious ahead of today's crucial macro data from the US, due for release later during the NA session.
Wednesday's US economic docket features the release of ADP report, which is seen as a precursor to Friday's official NFP data, and the first revision of Q2 growth figures.
Technical levels to watch
Weakness below $1304 level is likely to find support near the $1300 round figure mark, which if broken could extend the corrective slide towards $1296-95 strong resistance break-point now turned support.
On the upside, $1311 level seems to act as immediate resistance, above which the metal is likely to dart back towards yesterday’s swing highs near $1325-26 area with some intermediate resistance near $1320 level.
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.