“¢ Improving risk sentiment weighed on the commodity’s safe-haven status.
“¢ Rebounding US bond yields further collaborated to the selling pressure.
“¢ Investors now look forward to the US GDP growth figures for a fresh impetus.
Gold prices edged lower through the early European session on Thursday and dropped to one-week lows, around the $1275 level in the last hour.
Having failed to capitalize on the previous session’s intraday positive move, a slight improvement in the global risk sentiment dented the precious metal’s safe-haven status and exerted some fresh downward pressure on Thursday.
The risk-on mood was further reinforced by a solid rebound in the US Treasury bond yields, which largely offset concerns over escalating US-China trade tensions and further drove flows away from the non-yielding yellow metal.
Meanwhile, the US Dollar was seen consolidating the recent gains to near two-year tops and failed to influence the price action, albeit might turn out to be the only factor lending some support to the dollar-denominated commodity.
It would now be interesting to see if the commodity is able to attract any buying interest at lower levels or the current leg of a downfall sets the stage for an extension of this week’s rejection slide from the $1287-88 supply zone.
Thursday’s economic docket – highlighting the release of prelim (second estimate) US Q1 GDP growth figures, will provide fresh clues over the health of the world’s top economy and provide a fresh directional impetus.
Technical levels to watch
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