Gold recovers early lost ground, back around $1320 level
• Retracing US bond yields lending some support.
• Reviving safe-haven demand provides an additional boost.
• Resurgent USD seemed to cap gains ahead of Fedspeaks.
Gold recovered majority of its early losses to $1315 support area and is now headed towards the top end of its daily trading range.
Currently placed around the $1319-20 region, the latest leg of an uptick, since the early European session, was backed by a mildly softer tone around the US Treasury bond yields, which tends to benefit the non-yielding yellow metal.
This coupled with a modest retracement in equity markets, with all the major European indices paring early strong gains, further underpinned the precious metal's safe-haven appeal.
However, expectations for upcoming Fed rate hike move in March, coupled with a strong post-NFP US Dollar buying interest kept a lid on any additional gains for the dollar-denominated commodity, at least for the time being.
In absence of any major market moving economic releases from the US, a trio of Fed speakers - Atlanta Fed President Raphael Bostic, San Francisco Fed President Williams and Boston Fed President Rosengren, would now be looked upon for some fresh impetus.
Technical levels to watch
Any subsequent up-move is likely to confront resistance near the $1323-26 region, above which the commodity seems all set to aim towards testing $1334 supply zone. On the flip side, $1315-13 zone now seems to have emerged as an immediate support, which if broken could accelerate the corrective slide back towards the $1300 round figure mark.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
