Gold up little, around $1277
| • Fails to extend early up-move beyond 100-DMA.
• Sliding US bond yields/risk-off environment supportive.
• This week’s key events/US macro data holds the key.
Gold held on to its modest daily gains through the early NA session but struggled to gain any follow through traction beyond 100-day SMA.
Currently hovering around $1278-77 area, off session tops touched in the past hour, a fresh wave of global risk aversion trade benefitted the precious metal's safe-haven demand at the start of a busy week. The global flight to safety was further reinforced by a sharp retracement in the US Treasury bond yields and remained supportive of a modest pickup in demand for the non-yielding commodity.
However, resurgent US Dollar, which tends to drive flows away from dollar-denominated commodities - like gold, kept a lid further up-move. Moreover, investors also seemed to refrain from placing aggressive bet ahead of this week's key US economic report.
This week's important US macro data includes the release of latest inflation figures and monthly retail sales data, which along with the Fed Chair Janet Yellen's speech on Tuesday would be looked upon for fresh clues over the Fed's near-term monetary policy outlook.
Apart from the monetary policy trajectory, market participants will also keep a close eye and take cues from any new developments surrounding the Trump administration’s tax legislation.
Technical levels to watch
Immediate support is pegged near the $1273 region, below which the commodity is likely to accelerate the slide towards $1269 horizontal level before eventually dropping to $1260 support.
On the upside, any further up-move is likely to confront fresh supply near the $1281-82 region, which if cleared could lift the metal back towards $1288 (multi-week tops) en-route $1295 hurdle.
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.