The upbeat market mood, a modest USD uptick exerted some pressure on gold. Worsening US-China relations should help limit deeper losses, at least for now. Gold dropped to fresh two-week lows during the early European session and was last seen trading with modest losses, just above the $1700 mark. The commodity struggled to capitalize on its early uptick to the $1716 area, instead met with some fresh supply and drifted into the negative territory for the third consecutive session. The downtick, also marking the metal’s fourth day of a negative move in the previous five, was sponsored by the upbeat mood around the global equity markets and a goodish pickup in the US dollar demand. The positive news of a potential COVID-19 vaccine added to the recent optimism over the re-opening of economies across the world and raised hopes for a sharp V-shaped recovery for the global economy. This, in turn, boosted investors’ confidence and the same was evident from some follow-through rally in the global equity markets, which undermined the precious metal’s perceived safe-haven demand. Meanwhile, the US dollar was back in demand on Wednesday and further collaborated towards exerting some pressure on the dollar-denominated commodity. However, concerns about a further escalation in diplomatic tensions between the US and China might help limit deeper losses for the yellow metal. It is worth reporting that the US President Donald Trump on Tuesday indicated a strong reaction to China’s planned national security law for Hong Kong and added that it would be announced by the end of the week. China was quick to retaliate and threatened countermeasures against any US actions. From a technical perspective, the commodity was seen hovering around the lower end of over one-month-old ascending trend-channel. This makes it prudent to wait for some follow-through selling, possibly below the $1700 mark, before traders start positioning for any further near-term depreciating move. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Cryptocurrency Market Update: Ripple ODL platform raises eyebrows after moving 70 million XRP FX Street 3 years The upbeat market mood, a modest USD uptick exerted some pressure on gold. Worsening US-China relations should help limit deeper losses, at least for now. Gold dropped to fresh two-week lows during the early European session and was last seen trading with modest losses, just above the $1700 mark. The commodity struggled to capitalize on its early uptick to the $1716 area, instead met with some fresh supply and drifted into the negative territory for the third consecutive session. The downtick, also marking the metal's fourth day of a negative move in the previous five, was sponsored by the upbeat… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.