Gold in search of a firm direction, stuck in a range around $1190 level

   “¢   Resurgent US bond yields kept a lid on any meaningful up-move.
   “¢   Subdued USD demand/risk-off mood helped limit any deeper losses.  
   “¢   Traders now eye US PPI print for some short-term opportunities.

Gold struggled to build on overnight rebound from over one-week lows and seesawed between tepid gains/minor losses through the mid-European session.

The US President Donald Trump’s latest criticism over the pace of Fed rate hikes prompted some US Dollar profit-taking on Tuesday and helped the dollar-denominated commodity to recover early lost ground.  

However, a combination of diverging forces failed to provide any fresh impetus, or assist to build on the momentum, and led to a range-bound/subdued price action on Wednesday.  

With the USD still struggling to regain any meaningful positive traction, a fresh leg of an upsurge in the US Treasury bond yields kept a lid on any follow-through up-move for the non-yielding yellow metal.

Meanwhile, a continuous deterioration in investors’ appetite for riskier assets – like equities underpinned the precious metal’s safe-haven status and helped limit any immediate downside, at least for the time being.

Moving ahead, traders now look forward to the release of September US PPI print for some short-term trading impetus. The key focus, however, will be on Thursday’s consumer inflation figures, which should help investors determine the next leg of directional move.  

Technical levels to watch

The $1184-83 region might continue to act as an immediate support and is closely followed by $1180 level, below which the commodity is likely to accelerate the fall towards $1174 horizontal support.

On the flip side, the $1191-92 zone might now act as an immediate resistance, which if cleared should lift the metal beyond the key $1200 psychological mark towards testing the $1203-04 supply zone.