Gold holds weaker below $1350 amid a modest USD uptick
• Surging US bond yields help revive USD demand.
• Risk-off mood helps limit sharp downslide.
• US economic data eyed for fresh impetus.
Gold held with minor losses through the early European session and is currently placed near the lower end of its daily trading range, below $1350 level.
The precious metal extended last week's retracement from 17-month tops and was now being weighed down by a modest US Dollar rebound. Despite Friday's data showing a slower than expected US economic growth, the ongoing upsurge in the US Treasury bond yields underpinned the USD demand and prompted some selling around the non-yielding yellow metal.
The bearish pressure, however, remained limited amid weaker trading sentiment around equity markets, which was seen lending some support to the commodity's safe-haven appeal.
The metal has managed to hold within Friday's broader trading range as traders now look forward to the US data for some fresh impetus. Today's US economic docket features the release of Fed's preferred inflation gauge - Core PCE Price Index, and personal spending/income data, which might influence the USD price dynamics and drive demand for dollar-denominated commodities - like gold.
Technical levels to watch
Immediate support is pegged near $1344-43 area, below which the metal is likely to accelerate the corrective slide even below $1340 intermediate support towards its next support near the $1335 region.
On the upside, any meaningful up-move is likely to confront strong barrier near the $1358-60 zone, which if cleared should pave the way for an extension of the commodity's up-move towards July 2016 swing highs resistance near the $1375 region.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
