- Gold failed to capitalize on the overnight bounce from over one-month lows.
- A modest recovery in the global risk sentiment weighed on safe-haven assets.
- Rebounding US bond yields underpinned the USD and added to the selling bias.
Gold edged lower through the early European session on Tuesday and is currently placed near the lower end of its daily trading range, around the $1484 region.
A combination of factors failed to assist the precious metal to capitalize on the previous day’s goodish intraday recovery move from over one-month lows to levels beyond the key $1500 psychological mark.
Gold weighed down by a combination of factors
Having recorded their worst drop in more than three decades on Monday, a strong rebound in the US equity futures dented the commodity’s safe-haven status and exerted some fresh downward pressure.
This coupled with a goodish pickup in the US dollar demand further undermined demand for the dollar-denominated commodity and contributed to the weaker tone for the seventh consecutive session on Tuesday.
As investors looked past the Fed’s aggressive policy easing, a goodish rebound in the US Treasury bond yields helped revive the USD demand and drove flows away from the non-yielding yellow metal.
It is worth recalling that the Fed slashed its key interest rates to zero and announced a massive $700 billion bond-buying program to offset any negative impact on the US economy from the coronavirus pandemic.
Moving ahead, market participants now look forward to the release of the US monthly retail sales figures for some short-term trading opportunities later during the early North-American session.
Technical levels to watch
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