• Improving risk appetite denting safe-haven demand.
• Pickup in the US bond yields adding to downward pressure.
• Today’s key focus remains on central bankers gathering.
Following a modest uptick on Monday, gold came under some renewed selling pressure and touched over 1-week low level of $1270 in the past hour.
A fresh wave of global risk-on trade, as depicted by bullish trading sentiment across European bourses was seen weighing on the precious metal's safe-haven appeal. Adding to this, a modest pickup in the US Treasury bond yields exerted additional downward pressure on the non-yielding commodity.
However, a softer tone around the US Dollar, amid uncertainty over the US tax legislation, helped limit deeper losses. Later during the NA session, the release of US PPI print might influence the USD price dynamics and provide some short-term trading impetus for dollar-denominated commodities - like gold.
Investors attention, however, would remain glued to an ECB-hosted conference in Frankfurt, where comments from the ECB President Mario Draghi, the Fed Chair Janet Yellen, BoE Governor Mark Carney and BoJ Governor Haruhiko Kuroda would be looked upon for clues over further monetary policy moves and infuse some volatility in the markets.
Technical levels to watch
A follow-through selling pressure below $1269 level might continue dragging the commodity towards the very important 200-day SMA support near the $1263 region en-route $1260 area (early Oct. low).
On the upside, 100-day SMA near the $1278 region seems to have emerged as immediate resistance, above which the metal is likely to head back towards $1286-88 supply zone before darting towards the $1300 handle.
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