Gold falls to 1-1/2 week lows, 100-DMA support around $1220 level

• Resurgent USD demand/positive US bond yields prompted fresh selling.
• Signs of stability in equity markets further undermine safe-haven demand.
• Traders now eye US consumer confidence index for short-term impetus.

Gold kept losing ground through the mid-European session and fell to 1-1/2 week lows in the last hour.

The commodity extended Friday's retracement slide from fresh three-month tops and remained under some selling pressure for the second consecutive session on Tuesday.

A goodish pickup in the greenback demand, with the key US Dollar Index hitting over 2-1/2 month tops, was seen as one of the key factors undermining demand for the dollar-denominated commodity.

Adding to this, a modest uptick in the US Treasury bond yields exerted some additional downward pressure on the non-yielding yellow-metal and further collaborated to the ongoing downfall.

Meanwhile, investors looked past overnight report, which renewed worries about an escalation of the US-China trade war, and an effort by equities to stabilize also did little to support the precious metal's safe-haven status.

Currently hovering around 100-day SMA support, around the $1220 region, market participants now look forward to the release of Conference Board's US consumer confidence index in order to grab some short-term opportunities during the early North-American session.

Technical levels to watch

A follow-through selling has the potential to continue dragging the commodity further towards $1215 intermediate support en-route the $1211-10 region. On the flip side, any attempted move back above $1226 area now seems to confront resistance near the $1232-34 region, above which the metal is likely to aim towards surpassing the $1240-41 supply zone.

Share: Feed news

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.