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  • Gold holds lower grounds after the previous day’s downbeat performance.
  • Vaccine jitters join geopolitical challenges but Fed’s cautious optimism helps S&P 500 Futures.
  • US dollar weakness tests the bears amid dull markets.

Gold remains pressured around $1,736 amid the initial Asian session trading on Thursday. The yellow metal dropped for three days in the last four even as the US dollar index (DXY) remains dismal around a one-month low. The reason could be traced from vaccine jitters as well as a lack of major news in the market.

Nothing impresses gold buyers”¦.

Although DXY dropped to the lowest since March 18, gold stays pressured as markets remain unimpressed by a lack of major data/events as well as the market’s wait for US President Joe Biden’s $2.25 trillion infrastructure package.

Also testing the yellow metal buyers is the same old wordings from the Fed policymakers and Beige Book that suggests moderate economic recovery while shrugging off tapering at least until 2022.

Furthermore, Johnson & Johnson’s vaccine stays blacklisted following blood-clotting issues whereas the US cancels deploying warships to the Black Sea. Additionally, news that Saudi led coalition destroyed explosive-laden drone fired in the direction of Jazan also couldn’t fill life to the party.

Against this backdrop, Wall Street benchmarks closed mixed after refreshing record tops whereas S&P 500 Futures print mild gains by the press time. It’s worth mentioning that the US 10-year Treasury yields recover some of its early-week losses by flashing 1.3 basis points 9bps) of gains to 1.63% by the press time.

Given the sluggish markets and an absence of fresh catalysts, gold prices may stretch the latest downbeat performance amid mild challenges to the sentiment. However, today’s US Retail Sales data will be the key to watch, not to forget vaccine and geopolitical news, as well as updates on US President Biden’s infrastructure spending.

Technical analysis

Failures to keep a bounce off 200-SMA highlights $1,726 as the key immediate support unless the quote stays positive beyond $1,750.