Gold surrenders daily gains amid reviving USD demand
• US bond yields halt the bearish slide and exert some pressure.
• Global risk-on trade dampens safe-haven appeal.
Gold finally broke down of its Asian/European session consolidation phase and refreshed session lows in the last minute.
As the NA session got underway, the precious metal surrendered all of its early gains to $1339 area, 4-day tops, and has now drifted into negative territory amid reviving US Dollar demand.
A modest US Treasury bond yields rebound extended some support to the greenback and eventually prompted some fresh selling around dollar-denominated commodities - like gold.
Meanwhile, the ongoing global risk-on rally, which tends to weigh on traditional safe-haven assets, further collaborated to the commodity's sharp retracement over the past hour or so.
The recent directionless price-action seems to suggest that investors wait for some fresh fundamental trigger before committing to the next leg of directional move. Hence, this week's highly anticipated ECB monetary policy meeting minutes and important US macro data will play a key role in determining the metal's near-term trajectory.
Technical levels to watch
A follow-through retracement could get extended towards $1326 horizontal support, below which the commodity is likely to slide back towards $1322 level en-route $1313-12 support.
On the upside, the $1338-40 region might continue to act as an immediate hurdle, which if cleared has the potential to lift the metal towards $1349-50 intermediate barrier ahead of $1357-58 hurdle.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
