- A softer risk tone helped revive the commodity’s perceived safe-haven demand.
- Sliding US bond yields, subdued USD demand remained supportive of the uptick.
Gold edged higher through the early European session on Tuesday and is currently placed near the top end of its daily trading range, around the $1458-59 region.
A combination of supporting factors helped the precious metal to reverse an early dip to fresh two-week lows, around the $1451 region. The commodity turned positive for the day, snapping four consecutive days of losing streak, and has now recovered a major part of the overnight downfall.
Reviving safe-haven demand helped gain some traction
As investors looked past the recent positive US-China trade-related headlines, a softer tone around equity markets underpinned demand for traditional safe-haven assets and helped the commodity to stall its recent downfall back closer to multi-month lows, tested earlier this month.
The prevalent cautious mood was further reinforced by a pullback in the US Treasury bond yields, which further drove flows towards the non-yielding yellow metal. Meanwhile, a subdued US dollar demand did little to hinder the intraday recovery move for the dollar-denominated commodity.
It, however, remains to be seen if the commodity is able to capitalize on the momentum or the attempted recovery move is still seen as a selling opportunity amid reviving hopes for a partial “phase one” trade deal between the world’s two largest economies.
Moving ahead, the US economic docket – featuring the release of the Conference Board’s Consumer Confidence Index and Richmond Manufacturing Index – will now be looked upon for some meaningful trading opportunities later during the North-American session on Tuesday.
Technical levels to watch
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