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Gold staged a goodish rebound from eight-month lows touched earlier on Tuesday and finally settled with modest gains for the first time in six sessions. XAU/USD remains at the mercy of US bond yields/USD price dynamics, FXStreet’s Haresh Menghani reports.

See – Gold Price Analysis: Difficult to ignore bearish trend in XAU/USD – OCBC

Key quotes

“Wednesday’s US economic docket – featuring the releases of the ADP report on private-sector employment and ISM Services PMI – will be looked upon for some impetus later during the early North American session. Traders might further take cues from the broader market risk sentiment; the US bond yields and the US price dynamics in order to grab some meaningful opportunities.”

“Any further recovery might be seen as a selling opportunity and remain capped near the $1960-65 region. That said, a sustained strength beyond will negate the bearish outlook and trigger a fresh wave of the short-covering move. The commodity might then aim back to reclaim the $1800 mark before eventually darting towards the 200-day EMA strong barrier near the $1815-16 supply zone.”

“The $1725-23 region now seems to protect the immediate downside and is followed by support near the overnight swing lows, around the $1707 area. Failure to defend the mentioned support levels might turn the commodity vulnerable to break below the $1700 mark and accelerate the downfall towards the $1675-70 congestion zone.”