- Gold gains some traction on Tuesday, albeit remains confined in the overnight trading range.
- The emergence of some fresh USD selling underpinned the dollar-denominated commodity.
- The upbeat market mood, surging US bond yields kept a lid on any strong gains for the metal.
Gold traded with a mild positive bias through the mid-European session and was last seen hovering around the top end of its daily range, just below the $1760 level.
The precious metal witnessed some intraday volatility after White House trade advisor Peter Navarro said that the US-China trade deal was “over” and subsequently clarified that his comments were taken wildly out of context.
Despite the two-way moves, the commodity lacked any firm directional bias and remained well within the previous day’s trading range. A combination of diverging forces failed to provide any meaningful impetus and led to the range-bound price action.
The US dollar failed to preserve its intraday gains, instead met with some fresh supply and extended the overnight retracement slide from three-week tops. This, in turn, was seen driving flows towards the dollar-denominated commodity.
However, the upbeat market mood undermined the safe-haven commodity and kept a lid on any gains. The already stronger risk sentiment got an additional boost following the release of upbeat PMI reports from the Eurozone and the UK.
This coupled with a strong pickup in the US Treasury bond yields might further cape the upside for the non-yielding yellow metal. Nevertheless, the commodity remains well within the striking distance of multi-year tops, around the $1765 level.
Market participants now look forward to the US economic docket –highlighting the release of flash Manufacturing/Services PMI, along with New Home Sales and the Richmond Manufacturing Index – to grab some trading opportunities.
Technical levels to watch
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