“¢ A goodish pickup in the US bond yields prompts some fresh selling.
“¢ Subdued USD demand/risk-off mood helps limit immediate sharp fall.
Gold traded with a mild negative bias through the early North-American session and is currently placed at the lower end of its daily trading range, around the $1187-86 region.
After yesterday’s goodish rebound from the $1183 support area, the precious metal came under some renewed selling pressure on Wednesday and moved back within striking distance of over one-week lows.
Despite the US President Donald Trump’s criticism over the pace of Fed rate hike, investors seemed convinced that the Fed continue raising interest rates by the end of the year, and beyond.
The same was evident from a fresh leg of an upsurge in the US Treasury bond yields, which eventually turned out to be one of the key factors driving flows away from the non-yielding yellow metal.
Meanwhile, a subdued US Dollar price action, which failed to gain any impetus from today’s US PPI figures, did little to influence demand for the dollar-denominated commodity.
Traders also shrugged off the prevailing risk-off mood, which tends to underpin the precious metal’s safe-haven demand, albeit seemed to be the only factor helping limit deeper losses, at least for the time being.
Technical levels to watch
The $1183 level, closely followed by the $1180 area seems to protect the immediate downside, which if broken is likely to accelerate the fall further towards $1174 horizontal support.
On the flip side, immediate resistance is pegged near the $1191-92 region, above which the commodity is likely to aim towards surpassing the key $1200 psychological mark.
Share
