• The prevalent USD selling bias continues to benefit the commodity.
• Bulls seemed rather unaffected by a fresh wave of global risk-on trade.
• A modest uptick in the US bond yields might cap gains ahead of FOMC.
Gold continued gaining positive traction through the mid-European session and is currently placed at three-day tops, around the $1310 region.
The prevalent US Dollar selling bias, which aggravated further in the past hour or so, was seen as one of the key factors benefitting the dollar-denominated commodity and fueling the ongoing positive momentum for the third consecutive session on Tuesday.
Bulls seemed rather unaffected by the prevalent risk-on mood, which tends to dent the precious metal's relative safe-haven demand, though a modest uptick in the US Treasury bond yields might keep a lid on any strong follow-through up-move.
Hence, it would be interesting to see if bulls are able to maintain their dominant position or the commodity starts losing steam as the focus now shifts to this week's key event risk - the latest FOMC policy update, which might provide some fresh directional impetus for the non-yielding yellow metal.
Technical levels to watch
Immediate resistance is pegged near the $1312-14 region, above which the metal seems all set to aim towards testing the $1321-22 supply zone. On the flip side, the $1305 region, followed by the key $1300 psychological mark now seems to protect the immediate downside, which if broken might accelerate the slide further towards $1295-93 support zone.
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
EUR/USD holds above 1.0650 amid renewed selling pressure in US Dollar
The EUR/USD pair edges higher to 1.0672 during the early Thursday. The recovery of that major pair is bolstered by renewed selling pressure in the US Dollar and a risk-friendly environment.
GBP/USD remains capped below 1.2470, eyes on US data
The GBP/USD pair trades on a softer note around 1.2450 on Thursday. The softer UK inflation data prompted the expectation that the Bank of England will start lowering interest rates in the coming months, which weighs on the Pound Sterling against the Greenback.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns. Gold confirmed a symmetrical triangle breakdown on 4H but defends 50-SMA support.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.