- Higher Treasury yields counter broad USD retreat, leaving Gold listless.
- US-China trade optimism, US political worries seem likely drivers ahead of US data.
Gold is seen extending its downside consolidation phase into the European trading, as a tug-of-war persists between the bulls and bears ahead of the key US macro data releases.
USD price-action to play a pivotal role
Amid a retreat in the US dollar across the board, the gold bulls are seen cushioning the downside. However, the bias is seen tilting in favor of the bears in early European trades, as a recovery in the risk sentiment, as indicated by rallying Treasury yields and a rebound in the Wall Street futures, seems to weigh negatively on the safe-haven gold.
Moreover, looming US political and global growth concerns also continue to keep the sentiment buoyed around the yellow metal. However, the upside in the US dollar could gain traction across its main competitors should the US Durable Goods and Core PCE Price Index better estimates.
XAU/USD Technical levels to watch
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