Gold turns lower for the day, drops to session lows below $1490 level

• The prevalent risk-on mood dented demand for traditional safe-haven assets.
• A modest pickup in the USD demand further added to the intraday selling bias.

Having failed to capitalize on its early uptick, Gold drifted into the negative territory and dropped to fresh session lows in the last hour.
 
A combination of negative factors failed to assist the precious metal to build on the previous session’s modest uptick, rather exerted some fresh downward pressure since the mid-European session on Tuesday.

Risk-on/a modest USD uptick weighed

The prevalent risk-on mood, as depicted by a bullish trading sentiment around equity markets, weighed on traditional safe-haven assets and was seen as one of the key factors behind the initial leg of the intraday slide.
 
This coupled with a modest pickup in the US Dollar demand exerted some additional downward pressure on the dollar-denominated commodity and further collaborated to the pullback from the $1500 neighbourhood.
 
Meanwhile, a sharp intraday fall in the US Treasury bond yields and firming expectations that the Fed will cut rates in October did little to lend any support, albeit might help limit deeper losses for the non-yielding yellow metal.
 
Hence, it will be prudent to wait for a strong follow-through selling before traders start positioning for any further depreciating move amid absent relevant market moving economic releases from the US on Tuesday.

Technical levels to watch