• Trades with modest losses for the second consecutive session.
• Bulls fail to capitalize on the risk-off mood/subdued USD demand.
• The Fed Chair Jerome Powell’s testimony eyed for fresh impetus.
Gold extended its steady decline from intraday highs, around the $1330 area, and is currently placed at the lower end of its daily trading range.
Having failed to capitalize on Friday's attempted bounce, the precious metal traded with a mild negative bias and has now moved within striking distance of last week's swing low. The commodity did get a minor lift during the Asian session on Tuesday amid reviving safe-haven demand in wake of rising geopolitical tensions in the Asian continent, albeit lacked any strong follow-through.
The latest optimism over the US-China trade negotiations, especially after the US President Donald Trump said that he will extend a deadline to escalate tariffs on Chinese imports, kept a lid on any further up-move. Meanwhile, bulls seemed rather unimpressed by a subdued US Dollar price action, which tends to underpin demand for the dollar-denominated commodity, rather preferred to wait on the sidelines ahead of today's key event risk.
The Fed Chair Jerome Powell's two-day testimony to Congress will be closely scrutinized for the central bank's view on monetary policy and might provide a fresh directional impetus for the non-yielding yellow metal. This coupled with a slew of important macro data, including Chinese PMI prints and the revised US Q4 GDP growth figures, will further contribute towards determining the commodity's near-term trajectory.
Technical levels to watch
Immediate support is pegged near the $1321 area, below which the metal is likely to accelerate the slide towards the $1315-14 region en-route the next major support near the $1305 horizontal zone. On the flip side, the $1331-33 region now seems to have emerged as an immediate hurdle, which if cleared might lift the commodity back towards $1340 supply zone.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.