- Gold witnessed some intraday profit-taking amid a modest bounce in the equity markets.
- Concerns about rising coronavirus cases, fresh USD selling helped limit any deeper losses.
- The set-up remains tilted firmly in favour of bulls and a possible move towards $1800 mark.
Gold extended its sideways consolidative price moves through the mid-European session and remained confined in a narrow trading band, around the $1770 region.
The commodity failed to capitalize on the previous day's strong intraday up move of around $25 dollar and witnessed a modest intraday pullback following an early uptick to the $1775 region earlier during the Asian hours on Monday.
A modest rebound in the global equity markets undermined demand for traditional safe-haven assets. Adding to this, a goodish intraday uptick in the US Treasury bond yields exerted some pressure on the non-yielding yellow metal.
However, fading hopes of a sharp V-shaped global economic recovery, coupled with the emergence of some fresh US dollar selling pressure helped limit any deeper losses for the dollar-denominated commodity, rather attracted some dip-buying.
This comes amid growing worries that a surge in new coronavirus cases might trigger renewed lockdown measures. This, in turn, should assist the metal to prolong its recent bullish trajectory and aim to reclaim the $1800 round-figure mark.
Monday's US economic docket features the only release of Pending Home Sales data. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in producing some meaningful trading opportunities.
Technical levels to watch
|Today last price||1773.16|
|Today Daily Change||1.82|
|Today Daily Change %||0.10|
|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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