- Gold is hovering within a tight range at the start of the European session on Tuesday.
- The nervousness around COVID-19 and the sustained selling around the USD continues to lend some support to the yellow metal.
- The appetite for risk and the rebound in US bond yields help limit the deepest losses for the precious metal.
The oro lacks a firm directional bias and oscillates between lukewarm gains and minor losses around the $ 1,770 level at the start of the European session on Tuesday.
A combination of divergent factors has failed to provide a significant boost to the XAU / USD and has led to moderate and limited price movements within a range during the first half of trading action on Tuesday. The underlying bullish sentiment in financial markets has been seen as a key factor weighing on the safe haven precious metal.. This, coupled with a modest rally in US Treasury yields, has limited the rise of the yellow metal.
Having said that, renewed fears about another dangerous wave of coronavirus infections globally and the sustained selling bias of the US dollar have offered some support to gold prices, denominated in dollars. This, in turn, warrants some caution before positioning for an extension of the previous day’s pullback from the $ 1,790 region, close to two-month highs.
The US dollar remains weak near multi-week lows amid speculation that the Fed will keep interest rates near zero for a longer period. Investors now seem to be in line with the Fed’s view that any spike in inflation is likely to be transitory and they have been lowering their expectations of a tightening of monetary policy earlier than anticipated.
There is no major economic data release from the US on Tuesday. That said, the recovery in US bond yields could offer some support to the USD and put some downward pressure on the XAU / USD. Investors could follow the signs of broader market risk sentiment to seize some short-term opportunities.
Gold 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.
