- Gold seesaws in a choppy range around $1,770 after stepping back from two-month top.
- Wall Street closed with losses, US 10-year Treasury yields recovered.
- Covid fears, uncertainty over US infrastructure spending weigh on risks amid a light calendar.
- Risk catalysts remain as the key before economic calendar gets heavy.
Following its pullback from late February tops, gold holds lower ground near $1,770, choppy between $1,770 and $1,772 amid the initial Asian session on Tuesday. The yellow metal failed to cheer the US dollar’s weakness the previous day as market sentiment worsened during the late North American session.
Bulls need more ammunition”¦
Although US President Joe Biden showed readiness to compromise on his $2.25 trillion infrastructure bill, Republicans seem less entertained and so were the markets. On the contrary, a bill to tame the big tech companies weighed on the Wall Street benchmarks and US dollar at the week’s start.
Also on the risk-negative side could be the coronavirus (COVID-19) fears emanating from Europe and Asia. Furthermore, the Russian build-up of military near the Ukrainian border also challenged the market sentiment.
Alternatively, a light calendar, faster vaccinations in the US, Israel and the UK joined a light calendar to propel the US Treasury yields the most in over a week.
Against, the US dollar index (DXY) registered the biggest intraday losses of 2021 the previous day while S&P 500 Futures print mild gains, despite Wall Street losses, by the press time.
Moving on, a lack of major data/events in Asia, except for the rate decision of the People’s Bank of China and the RBA’s minutes, will keep gold traders directed towards risk news for fresh impulse. Although the latest escalation in the jabbing joins the economic optimism in the West, the virus strains and geopolitical fears challenge gold buyers amid thin macros.
Technical analysis
Pullback moves from 100-day EMA, around $1,789, direct gold sellers towards 50-day EMA retest, near $1,759 by the press time.
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