- The price of gold oscillates within a range during the first half of the trading action on Wednesday.
- A positive tone in the stock markets limits gains for the safe-haven XAU / USD.
- The pullback in US bond yields is weighing on the dollar and offers some support for the yellow metal.
The price of oro it lacks a firm directional bias and oscillates between tepid gains and minor losses at the start of the European session on Wednesday. At the time of writing, the XAU / USD is trading around the region of $ 1,745, practically unchanged on the day.
The precious metal has struggled to capitalize on the previous day’s strong rebound from the $ 1,723 area, at one-week lows, and has seen a moderate and limited price action within a range on Wednesday. A generally positive tone in the stock markets it has been considered a key factor that has limited the gains of the XAU / USD as a safe haven. However, the decline remains supported amid the prevailing sell bias around the US dollar, which tends to benefit gold prices, denominated in dollars.
The US dollar has come under strong selling pressure after the latest US consumer inflation figures provided no evidence of an increase in price pressures. The data reinforced the Fed’s outlook that higher inflation in the coming months will be transitory. This, in turn, triggered a further downward movement in US Treasury yields and weighed on the USD.
In fact, 10-year US government bond yield fell to 1.62%, which has been considered another factor that lends some support to the yellow metal that does not perform. With that said, the lack of solid continuation buying in the XAU / USD warrants some caution for the bulls and before positioning for any short-term bullish moves.
There is no major US economic data release on Wednesday. Therefore, the key focus of attention will continue to be Fed Chairman Jerome Powell’s scheduled speech during today’s American session. This, coupled with broader market risk sentiment, USD price dynamics, and US bond yields could lead to some trading opportunities around XAU / USD.
Gold technical levels
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