Gold holds steady below 2-1/2 month lows, around $1230 level

• Rising diplomatic tensions continue to underpin safe-haven demand.
• Subdued USD price-action remains supportive of a mildly positive tone.
• A modest uptick in the US bond yields seemed to cap meaningful up-move.

Gold traded with a mild positive bias on Tuesday and remained within striking distance of 2-1/2 month high, set in the previous session.

A combination of positive factors helped the precious metal to build on last week's strong bullish momentum and lifted it to an intraday high level of $1233.30, the highest since July 26.

Rising diplomatic tensions between Western powers and Saudi Arabia, over the disappearance of journalist Jamal Khashoggi, was seen underpinning the precious metal's safe-haven status.

This coupled with some renewed US Dollar selling bias, further aggravated by Monday's disappointing release of US monthly retail sales data, provided an additional boost to the dollar-denominated commodity.

The momentum lifted the commodity beyond the 100-day SMA for the first time since late-April, though a modest uptick in the US Treasury bond yields kept a lid on any runaway rally for the non-yielding yellow metal.

With the USD struggling to gain any traction, a follow-through up-move, supported by some technical buying, remains a distinct possibility amid absent relevant market moving economic releases from the US.

Technical levels to watch

The $1233-35 region might continue to act as an immediate resistance, above which the metal is likely to aim towards testing $1241 intermediate hurdle en-route the $1248 supply zone.

On the flip side, $1224 area is likely to act as an immediate support, which if broken might prompt some profit-taking and accelerate the fall further towards $1215 horizontal support.

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.