• Persistent USD weakness helps regain traction.
• Weaker US bond yields provide an additional boost.
• Bullish momentum could extend towards 200-DMA hurdle.
Gold regained some fresh traction on Wednesday and moved back closer to 2-week tops during the early European session.
After yesterday's brief pause, the precious metal resumed with its recent recovery move from near 5-month lows and was being further supported by persistent greenback selling bias. In fact, the key US Dollar Index struggled near the 93.00 handle, despite the latest optimism over the long-awaited tax cut legislation, and underpinned demand for dollar-denominated commodities - like gold.
Adding to this, a mildly softer tone around the US Treasury bond yields provided an additional boost to the non-yielding commodity and further collaborated to the yellow metal's up-move to the $1265 level.
Meanwhile, a subdued trading action around European equity markets did little to influence the precious metal's safe-haven appeal, with the USD/US bond yield dynamics acting as key determinants of the bullish momentum.
With the only scheduled release of existing home sales, today's US economic docket lacks any major market data. Hence, a follow-through momentum, towards retesting the very important 200-day SMA hurdle, now seems a distinct possibility.
Technical levels to watch
Immediate resistance remains near the $1269 region (200-DMA), above which the commodity seems to head towards $1274-76 supply zone. On the flip side, $1261-60 area now becomes an immediate support to defend and is followed by support near $1255 and $1252 horizontal level.
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.
Recommended content
Editors’ Picks

AUD/USD faces formidable resistance around 0.6600
AUD/USD resumed its weekly pullback on Thursday, this time accelerating its losses to the 0.6450 region on the back of the stronger US Dollar, while disheartening prints from the Australian labour market also contributed to the sour mood around the Aussie.

EUR/USD: Losses could pick up pace below 1.1470
EUR/USD remained on the back foot and slipped back to fresh multi-week lows near 1.1550 on Thursday, always in response to the improved sentiment surrounding the Greenback, which in turn extended its upside momentum on the back of firmer data from key fundamentals.

Gold trades with modest losses near $3,340
Gold remains in auto-pilot around the $3,340 zone per troy ounce as the NA session draws to a close on Thursday. The yellow metal's negative trend stems from the extra improvement in the dollar, rising US yields, and some relief from trade concerns.

XRP price just 5% from record high as Ripple eyes Dubai's tokenized real estate market
Ripple's (XRP) uptrend paces toward new all-time highs, but is trading at around $3.25 on Thursday, after a remarkable recovery from a support level tested at $2.80 on Tuesday.

China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.

Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.