- Renewed US-China trade uncertainty helped gain some traction on Monday.
- Stability in equity markets, positive US bond yields kept a lid on further gains.
Gold failed to capitalize on the Asian session uptick to two-week tops and is currently placed near the lower end of its daily trading range, around the $1470 region.
The precious metal initially built on the overnight goodish intraday bounce from three-day lows and gained some follow-through traction on Tuesday amid receding hopes for a preliminary US-China trade deal.
US-China trade developments driving gold
Given the US President Donald Trump’s reluctance to roll back tariffs, CNBC reported on Monday that Chinese officials are pessimistic that a trade deal will be signed and boosted demand for traditional safe-haven assets.
The precious metal rallied over 1% from daily lows, albeit struggled to capitalize on the momentum and once again failed near a one-month-old trading range support breakpoint, now turned resistance around the $1475 region.
Some signs of stability in the global equity markets, reinforced by a modest uptick in the US Treasury bond yields turned out to be one of the key factors exerting some downward pressure on the non-yielding yellow metal.
Meanwhile, the intraday pullback seemed limited and is likely to remain cushioned amid a subdued US dollar demand, which tends to underpin demand for dollar-denominated commodities – like gold.
Moving ahead, Tuesday’s US economic docket, highlighting the release of housing market data, coupled with speeches by influential FOMC members will now be looked upon to grab some short-term trading opportunities.
Technical levels to watch
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