- Gold witnessed a modest intraday pullback amid a recovery in the US equity futures.
- A pickup in the US bond yields further exerted pressure on the non-yielding metal.
- Weaker USD might extend some support to the dollar-denominated commodity.
- The set-up still supports prospects for a move towards the ambitious $1800 target.
Gold struggled to capitalize on its early uptick back closer to multi-year tops and was last seen trading near daily lows, just below the $1770 region.
The ever-increasing number of new cases globally served as a warning that the fight against COVID-19 is not over and indicated that the road to recovery will be much slower than expected. Fading hopes of a sharp V-shaped global economic recovery continued weighing on investors' sentiment and benefitted the safe-haven precious metal.
This coupled with the emergence of some fresh US dollar selling further underpinned the dollar-denominated commodity and contributed to the early uptick on the first day of a new trading week. However, a modest rebound in the US equity futures kept a lid on any strong positive move for the metal, at least for the time being.
This coupled with a goodish intraday pickup in the US Treasury bond yields further collaborated towards capping gains, rather exerted some pressure on the non-yielding yellow metal. Despite a modest pullback, the commodity remains well within last week's broader trading range and the striking distance of multi-year tops set last Wednesday.
The range-bounce price action witnessed over the past one-week or so might still be categorized as consolidative. This, in turn, supports prospects for an extension of the near-term appreciating move towards the ambitious $1800/ounce target.
Technical levels to watch
|Today last price||1769.7|
|Today Daily Change||-1.64|
|Today Daily Change %||-0.09|
|Today daily open||1771.34|
|Previous Daily High||1772.04|
|Previous Daily Low||1747.59|
|Previous Weekly High||1779.41|
|Previous Weekly Low||1742.97|
|Previous Monthly High||1765.38|
|Previous Monthly Low||1670.72|
|Daily Fibonacci 38.2%||1762.7|
|Daily Fibonacci 61.8%||1756.93|
|Daily Pivot Point S1||1755.27|
|Daily Pivot Point S2||1739.21|
|Daily Pivot Point S3||1730.82|
|Daily Pivot Point R1||1779.72|
|Daily Pivot Point R2||1788.11|
|Daily Pivot Point R3||1804.17|
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