“¢ Fading safe-haven demand prompts some long-unwinding trade for the second-straight session.
“¢ Weaker US bond yields/subdued USD price action extend support and help limit deeper losses.
“¢ Market participants now eye US economic data in order to grab short-term trading opportunities.
Gold prices edged lower for the second consecutive session on Wednesday and extended the overnight pullback from near one-month tops.
As global stocks recovered from escalating US-China trade tensions-led slump at the start of this week, the precious metal held below the key $1300 psychological mark amid receding demand for traditional safe-haven status.
Risk sentiment got an additional boost following the US President Donald Trump’s reassuring comments on Tuesday, which revived hopes that a trade deal between the world’s two largest economies was still possible.
Meanwhile, improving risk sentiment did little to assist the US Treasury bond yields to build on the overnight rebound from multi-week lows and extended some support to the non-yielding yellow metal.
This coupled with a subdued US Dollar price action further underpinned demand for the dollar-denominated commodity and collaborated towards limiting deeper losses, at least for the time being.
Moving ahead, market participants now look forward to Wednesday’s US economic docket – highlighting the release of monthly retail sales data, for some fresh impetus and in order to grab short-term trading opportunities.
Technical levels to watch
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