- Gold witnessed some selling for the fourth straight day amid a modest pickup in the USD demand.
- A softer risk tone benefitted traditional safe-haven assets and might help limit any deeper losses.
- Investors might also refrain from placing any aggressive bets ahead of Jackson Hole Symposium.
Gold held on to its weaker tone through the mid-European session and was last seen hovering near the lower end of its daily trading range, around the $1915-17 region.
A modest pickup in the US dollar demand was seen as one of the key factors exerting some pressure on the dollar-denominated commodity. This coupled with some strong follow-through upsurge in the US Treasury bond yields further contributed to the weaker tone surrounding the non-yielding yellow metal.
This comes amid the optimism over a potential vaccine/treatment for the highly contagious coronavirus disease and easing concerns about the US-China diplomatic standoff. However, a softer risk tone extended some support to the precious metal’s safe-haven status and helped limit any further losses.
Nevertheless, the commodity remained depressed for the fourth consecutive session, also marking its fifth day of a negative move in the previous six. Meanwhile, the downside is likely to remain limited ahead of the Fed Chair Jerome Powell’s speech on Thursday during the Jackson Hole Symposium.
This makes it prudent to wait for some follow-through selling below last week’s swing low, around the $1711 area, before traders start positioning for any further near-term weakness. In the meantime, Wednesday’s release of the US Durable Goods Orders will be looked upon for some trading impetus.
Technical levels to watch
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