Gold holds steady above $1290 level, well within 1-week old trading range

   “¢   Remains supported by dovish Fed expectations and the UK political/Brexit uncertainties.
   “¢   The uptick remains capped amid the prevalent risk-on mood/fading safe-haven demand.

Gold regained some positive traction on Wednesday, albeit remained well within a broader trading range held over the past one week or so.

Spot prices edged through the Asian session and remained support by the UK political/Brexit uncertainty, which underpinned the precious metal’s perceived safe-haven demand. This coupled with dovish Fed expectations, reinforced by comments by various FOMC members, and provided an additional boost to the non-yielding yellow metal.  

Meanwhile, a weaker tone surrounding the US Dollar extended some additional support to the dollar-denominated commodity, though bulls lacked any strong conviction amid the prevalent risk-on mood. China’s stimulus pledge to counter the economic slowdown continued prompting some risk-on trade and turned out to be the only factor keeping a lid on any runaway rally for the commodity.

In absence of any major market moving economic releases from the US, the broader market risk-sentiment and the USD price dynamics might continue to act as key determinants of the metal’s intraday momentum through Wednesday’s trading session.

Technical levels to watch

Immediate resistance is pegged near the $1295-96 region, above which bulls are likely to lift the commodity further beyond the $1300 psychological mark towards testing June 2018 swing high, around the $1309 area. On the flip side, $1286 level might continue to protect the immediate downside, which if broken might prompt some additional weakness further towards $1280 horizontal zone.