- A combination of factors triggered some intraday gold sales on Monday.
- Market optimism and the recovery in US bond yields kept the initial rally limited.
- A modest rebound in the USD put some pressure on dollar-denominated commodities.
Gold updated daily lows, around the $ 1,869 region during the European session, though it quickly recovered somewhat thereafter. Gold last traded just above the $ 1,875 region, down about 0.20% on the day.
The precious metal was unable to capitalize on its positive intraday move, but instead faced rejection near the $ 1,900 mark amid the prevailing optimistic climate in the market. Global risk sentiment remained well supported by the latest optimism about a last-minute Brexit deal and relief from a long-awaited economic stimulus in the United States.
US President Donald Trump signed a $ 2.3 trillion pandemic aid and spending package on Sunday. The bill restores unemployment benefits to millions of Americans and prevented a federal government shutdown. Positive developments boosted investor sentiment and limited initial gains for the XAU / USD as a safe haven.
Risk appetite was bolstered by a good recovery in US Treasury yields this helped ease the intraday downward pressure on the US dollar and sparked some selling around the underperforming yellow metal. Apart from this, a good intraday rally in the USD put some additional pressure on the dollar-denominated commodity.
However, the decline remained muffled, at least for the time being, as investors seemed reluctant to place aggressive bets amid relatively low trading volumes. This makes it prudent to wait for a strong follow-up sell before positioning for any further depreciation moves for the XAU / USD.
Technical levels
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