“¢ The ongoing upsurge in the US bond yields continues to weigh.
“¢ Resurgent USD demand exerts some additional downward pressure.
“¢ Risk-off mood does little to lend any support and stall the downfall.
Gold struggled to build on its early uptick to $1192 are and has now moved within striking distance of over one-week lows touched in the previous session.
After yesterday’s steep fall, a fresh wave of global risk-aversion trade, following reports that the IMF lowered its global economic growth forecasts for 2018 and 2019, helped the precious metal to gain some positive traction.
The positive move quickly ran out of steam, with a combination of negative forces offsetting the positive factor and exerting some fresh downward pressure since the early European trading session.
Growing market conviction that the Fed will continue raising interest rates gradually through the end of this year, and beyond, pushed the US Treasury bond yields to fresh multi-year tops and drove flows away from the non-yielding yellow metal.
Adding to this, surging bond yields continued underpinning the US Dollar demand, which further collaborated towards attracting some fresh selling around the dollar-denominated commodity.
Today’s US economic docket offers little in terms of market-moving data and hence, the US bond/USD price dynamics might continue to play an important role in determining the commodity’s momentum through Tuesday’s trading session.
Technical levels to watch
The $1184-83 region might continue to act as an immediate support and is followed by $1180 level, below which the metal seems to slide further towards $1174 horizontal support. On the flip side, the $1189-90 region now becomes immediate resistance, which if cleared might trigger a short-covering bounce towards $1197 supply zone en-route the key $1200 psychological mark.
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