- Gold remained depressed for the fourth straight day amid a modest USD uptick.
- Concerns about the US economic recovery might help limit any deeper losses.
- US macro data eyed for some impetus ahead of the Jackson Hole Symposium.
Gold edged lower through the early European session on Wednesday and dropped to fresh daily lows, around the $1915 region in the last hour.
The precious metal extended this week's retracement slide from the $1962 region and remained depressed for the fourth consecutive session on Tuesday. The downtick also marked the fifth day of a negative move in the previous six and was sponsored by a modest pickup in the US dollar demand, which tends to undermine the dollar-denominated commodity.
Tuesday's disappointing release of the US Consumer Confidence Index fueled worries about the US economic recovery and provided a modest lift to the greenback's status as the global reserve currency. This comes on the back of the optimism over a potential vaccine/treatment for COVID-19, which further dented the commodity's safe-haven status.
Apart from this, a strong follow-through pickup in the US Treasury bond yields was seen exerting pressure on the non-yielding yellow metal. However, investors' reluctance to place any aggressive bets ahead of the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium might help limit any deeper losses for the commodity, at least for now.
Market participants now look forward to the US Durable Goods Orders. Barring any significant divergence from the expected figures, the data is unlikely to provide any meaningful impetus. Hence, it will be prudent to wait for some strong follow-through selling before positioning for an extension of the recent sharp corrective slide from record highs set on August 7.
Technical levels to watch
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