Gold slips below $1500 mark amid improving risk sentiment
|- Positive equity markets seemed to dent the commodity’s safe-haven status.
- A modest pickup in the USD demand exerts some additional downward pressure.
- The downside is likely to remain limited ahead of the latest FOMC meeting minutes.
Gold edged lower through the early European session on Wednesday and is currently placed at the lower end of its weekly trading range, just below the key $1500 psychological mark.
A combination of negative forces failed to assist the commodity to build on the previous session's modest uptick and exerted some fresh downward pressure on Wednesday - also marking the third day of a downtick in the previous four.
Improving risk sentiment prompts fresh selling
The prevalent risk-on mood - as depicted by a positive trading sentiment around equity markets and reaffirmed by a goodish pickup in the US Treasury bond yields - was seen weighing on the precious metal's safe-haven status.
Meanwhile, stronger US bond yields underpinned demand for the US Dollar and further collaborated towards driving flows away from the dollar-denominated commodity, though the downside seemed limited - at least for the time being.
Possibilities for the resolutions of the prolonged US-China trade dispute dampened further after the US President Donald Trump said that he is still not ready to make a trade deal with China, which might continue to lend some support.
Moreover, investors might also be reluctant to place any aggressive bets ahead of Wednesday's important release of the latest FOMC meeting minutes, which might provide a fresh directional impetus for the non-yielding yellow metal.
Hence, it will be prudent to wait for a strong follow-through selling before confirming that the commodity might have actually topped out in the near-term and positioning for any further corrective slide back towards the $1475 support area.
Technical levels to watch
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