- Gold gained some follow-through traction for the second straight session on Tuesday.
- The uptick was well supported by the heavily offered tone surrounding the greenback.
- The prevalent risk-on environment might cap gains ahead of the FOMC on Wednesday.
Gold climbed to two-week tops, around the $1969 region during the early European session, albeit lacked any strong follow-through and quickly retreated around $8-10 thereafter.
The precious metal built on the previous day's positive move and gained some follow-through traction for the second consecutive session on Tuesday. The heavily offered tone surrounding the US dollar was seen as a key factor that benefitted the dollar-denominated commodity.
However, the prevalent risk-on environment undermined the metal's safe-haven demand. The latest optimism over a potential COVID-19 vaccine remained supportive of the upbeat market mood, which got an additional boost from Tuesday's better-than-expected Chinese macro data.
Apart from this, a modest pickup in the US Treasury bond yields further collaborated towards capping any strong gains for the non-yielding yellow metal. Investors also seemed reluctant to place aggressive bets ahead of the FOMC monetary policy decision on Wednesday.
This makes it prudent to wait for some strong follow-through buying beyond the $1670-72 supply zone before traders start positioning for a further near-term appreciating move.
In the meantime, market participants will look forward to the US economic releases – the Empire State Manufacturing Index and Industrial Production – for some impetus. Heading into Wednesday's key event risk, the data is unlikely to be a major game-changer for the commodity.
Technical levels to watch
|Today last price||1961.14|
|Today Daily Change||4.34|
|Today Daily Change %||0.22|
|Today daily open||1956.8|
|Previous Daily High||1962.6|
|Previous Daily Low||1937.1|
|Previous Weekly High||1966.54|
|Previous Weekly Low||1906.62|
|Previous Monthly High||2075.32|
|Previous Monthly Low||1863.24|
|Daily Fibonacci 38.2%||1952.86|
|Daily Fibonacci 61.8%||1946.84|
|Daily Pivot Point S1||1941.73|
|Daily Pivot Point S2||1926.67|
|Daily Pivot Point S3||1916.23|
|Daily Pivot Point R1||1967.23|
|Daily Pivot Point R2||1977.67|
|Daily Pivot Point R3||1992.73|
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