Gold recovers lost ground amid notable USD supply, ADP report eyed
• Renewed USD selling pressure helps regain traction.
• Surging US bond yields now seemed to cap gains.
• ADP report might now provide a fresh trading impetus.
Gold recovered early lost ground $1306 area and refreshed session tops in the past hour, albeit lacked any strong follow-through momentum.
The precious metal stalled its hawkish FOMC meeting minutes-led corrective slide from 3-1/2 month tops and was being supported by some renewed US Dollar selling bias, which tends to underpin demand for the dollar-denominated commodity.
Further gains, however, remained capped amid fading safe-haven demand on the back of prevailing risk-on environment, as depicted by buoyant sentiment across global equity markets. Moreover, a goodish pickup in the US Treasury bond yields further collaborated towards keeping a lid on any meaningful up-move for the non-yielding yellow metal.
Traders now look forward to the US economic docket, highlighting the release of ADP report on private sector employment, for some short-term trading opportunities. The key focus, however, would remain on Friday's official jobs data, popularly known as NFP, which might provide a fresh directional impetus.
Technical levels to watch
Any further up-move is likely to confront immediate resistance near the $1317-18 region, above which the commodity seems all set to aim towards testing $1228-30 supply zone.
On the flip side, $1306 level (session low) followed by the $1300 handle might continue to protect the immediate downside, below which the metal could drift back towards testing 100-day SMA support near the $1288-87 region.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
