- Gold drew some buying in the declines amid renewed concerns about rising tensions between the United States and China.
- Hopes for US fiscal stimulus, falling US bond yields extended some support to commodities.
- The USD struggled to reserve its intraday recovery gains and also provided a small boost.
The oro It has managed to regain initial lost ground to three-day lows and was last seen trading just below $ 1,840, almost unchanged for the day.
The precious metal saw some selling during the first half of trading action on Monday, although a modest pullback in equity markets helped limit the initial slide. The initial drop was solely sponsored by a strong intraday rally in the US dollar from its 2.5-year lows, which tends to undermine demand for the dollar-denominated commodity.
However, renewed concerns about rising tensions between the world’s two largest economies affected global risk sentiment and helped limit the initial decline in the XAU / USD as a safe haven. Reuters reported that the United States was preparing to impose sanctions on at least a dozen Chinese officials for their alleged role in suppressing Hong Kong’s pro-democracy movement.
Meanwhile, the USD struggled to preserve its intraday recovery gains amid expectations that US lawmakers will accept a new coronavirus aid package. This, coupled with a weaker tone around US Treasury yields, extended some additional support, instead drawing some buying on the dips around the non-performing yellow metal and pushing it towards the lower. daily highs.
In the absence of major economic releases to move the US market, the XAU / USD remains at the mercy of USD price dynamics. Traders would follow the indications of general market risk sentiment. Apart from this, the US stimulus headlines could generate some significant trading opportunities around commodities.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
