- Gold extended its positive momentum for the third consecutive session on Tuesday.
- Broad-based USD weakness underpinned for the dollar-denominated commodity.
- The risk-on mood, rebounding US bond yields kept a lid on any runaway rally.
Gold maintained its strong bid tone through the mid-European session, albeit has retreated around $30 from intraday swing highs to the $1615 region.
The precious metal built on its recent recovery move from the $1450 strong horizontal support, or YTD lows and gained some strong follow-through traction for the third consecutive session on Tuesday.
Some aggressive US dollar long-unwinding, triggered by the Fed's open-ended and unlimited QE, turned out to be one of the key factors that provided a strong lift to the dollar-denominated commodity.
This was followed by reports that the US Senate and the Trump administration were close to reaching a bipartisan agreement on the massive coronavirus spending package and boosted investors’ confidence.
This was evident from a strong recovery in the global risk sentiment and reinforced by solid gains in the equity markets, which dampened demand for traditional safe-haven assets and capped the upside.
Meanwhile, the risk-on mood allowed the US Treasury bond yields to rebound swiftly on Tuesday, which further collaborated towards keeping a lid on any runaway rally for the non-yielding yellow metal.
The commodity trimmed a part of its early gains to near two-week tops and now seems to have stabilized just below the $1600 round-figure mark ahead of the flash US Manufacturing and Services PMIs.
Technical levels to watch
|Today last price||1597.52|
|Today Daily Change||44.74|
|Today Daily Change %||2.88|
|Today daily open||1552.78|
|Previous Daily High||1561.22|
|Previous Daily Low||1482.74|
|Previous Weekly High||1561|
|Previous Weekly Low||1451.3|
|Previous Monthly High||1689.4|
|Previous Monthly Low||1547.56|
|Daily Fibonacci 38.2%||1531.24|
|Daily Fibonacci 61.8%||1512.72|
|Daily Pivot Point S1||1503.27|
|Daily Pivot Point S2||1453.77|
|Daily Pivot Point S3||1424.79|
|Daily Pivot Point R1||1581.75|
|Daily Pivot Point R2||1610.73|
|Daily Pivot Point R3||1660.23|
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