- Gold bears return as US dollar attempts recovery from weekly lows.
- Uptick in Treasury yields and US equity futures also weigh on gold.
- Focus on trade developments and risk trends for fresh impetus.
Gold failed to capitalize on its recent recovery and fell back into the red zone on Tuesday, in response to the broad-based US dollar come back from weekly lows amid a bounce in the US Treasury yields. At the press time, the yellow metal trades near daily lows of $ 1459.92, down 0.20% so far.
The spot rallied nearly $ 10 on Monday after the US dollar was dumped across its main competitors on downbeat US ISM Manufacturing PMI and President Trump’s currency jawboning.
However, the recovery lost legs near 1465 levels, a surprise upturn in the Chinese manufacturing sector eased China's economic slowdown fears and acted as a drag on the safe-haven gold.
Despite the renewed weakness in the precious metal, the downside appears capped as Trump’s new tariffs on Brazil and Argentina revives trade gloom and keeps the safe-haven bids for gold somewhat underpinned.
Further, reports that India’s gold imports in November jumped 78% from a month earlier to the highest level in 5 months also offer some support to the gold bulls. Note that India is the world’s second-biggest gold consumer.
Reuters quoted an Indian government source, as saying the country imported 71 tonnes of gold in November vs. 40 tonnes imported in October.
In the day ahead, gold prices will continue to get influenced by the USD dynamics and risk sentiment, as markets await fresh cues on the trade front amid a lack of first-tier US macro news.
Gold 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.
Latest Forex News
Editors’ Picks
EUR/USD rebounds after dismal US PMIs
EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates.
GBP/USD advances to 1.2950 after US data
GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway
The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.
XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz
XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.
FXStreet launches Real-Time Trading Signals
FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.