- The sustained selling bias around the USD helps gold gain some positive traction on Tuesday.
- Risk appetite and rising US bond yields limit any further gains for the precious metal.
The oro is moving within a narrow range, trapped within the previous day’s move, around the $ 1,820 region at the start of the European session on Tuesday.
The sales tone around the US dollar It has helped dollar-denominated gold prices gain some positive traction during the first half of Tuesday’s trading action. However, a combination of factors has limited the strong gains of the XAU / USD, prompting some new selling at higher levels.
The Prevailing sentiment of risk appetite has been considered a key factor that has weighed on demand for the precious metal safe haven. Global risk appetite sentiment has remained supported by optimism about a strong economic recovery amid progress on coronavirus vaccines and expectations of a massive US fiscal spending plan.
This, along with The rise in Treasury bond yields has helped limit the rise of the yellow metal. Prospects for the approval of US President Joe Biden’s $ 1.9 trillion stimulus package have pushed the benchmark 10-year government bond yield to the highest level since February 2020.
From a technical perspective, the inability of gold to attract subsequent purchases suggests that short-term bearish bias could still be far from over. With that said, investors can still wait for sustained weakness below the $ 1,810 region before positioning for any further bearish movement for the XAU / USD.
In the absence of major US economic releases, overall market risk sentiment and US bond yields will play a key role in influencing precious metal prices. Apart from this, the USD price dynamics could generate some short-term trading opportunities around the XAU / USD.
Technical levels of gold
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