· Gold prices slipped on Tuesday after hitting a seven-week high in the previous session, as a rise in U.S. Treasury yields eclipsed support from a weaker dollar.
· Spot gold was down 0.2% to $1,766.32 per ounce by 0245 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday.
· U.S. gold futures eased 0.3% to $1,766.10 per ounce.
· “Gold came off yesterday’s high against a backdrop of rising yields. But, the rise in yields didn’t echo into the dollar. The greenback’s soggy performance is supportive for gold,” said DailyFX currency strategist Ilya Spivak.
· Benchmark 10-year U.S. Treasury yields rose above 1.6% after hitting a five-week low last week, increasing the opportunity cost of holding non-yielding bullion.
· U.S. President Joe Biden met on Monday with a bipartisan group of lawmakers who have all served as governors or mayors, as the White House seeks a deal on his more than $2 trillion jobs and infrastructure proposal.
· “As it comes to inflation, the more inflation we get and the less the Federal Reserve is able to ignore that, the worst for gold it is... Technically, gold’s trend is still pointing lower,” DailyFX’s Spivak said.
· Although the U.S. central bank has reiterated its stance to keep monetary policy accommodative some time, Fed officials have said that any spike in inflation is likely to be temporary.
· Offering some respite to bullion, the dollar index fell to a more than six-week low against its rivals, making gold less expensive for holders of other currencies.
· Spot gold may slide more into a range of $1,744-$1,758 per ounce, following its failure to break a resistance at $1,785, according to Reuters technical analyst Wang Tao.
· Gold Price Prediction: Sideways Trading Range Breakout, Quick Update on Sell Signal!
· Gold Price Analysis: XAU/USD struggles for direction, stuck in a range around $1,770 level
- Gold was seen oscillating in a narrow trading band through the Asian session on Tuesday.
- COVID-19 jitters, sustained USD selling continued lending some support to the commodity.
- The risk-on mood, uptick in the US bond yields helped limit any deeper losses for the metal.
Gold Price Analysis: XAU/USD remains hopeful whilst above key $1754 support – Confluence Detector
The Technical Confluences Detector shows that gold’s pullback is testing minor support around $1766, which is the convergence of the previous day low and Bollinger Band four-hour middle.
Defending the $1761 cushion is critical for the XAU bulls. At that point, the SMA100 one-hour coincides with the Fibonacci 38.2% one-week and the previous month high.
The next powerful cap is seen at $1754, the confluence of the pivot point one-month R1 and pivot point one-day S2.
On the flip side, recapturing the $1771 hurdle (Fibonacci 23.6% one-week) could bring the $1777 resistance back in the play. The latter is the intersection of the Fibonacci 38.2% one-day and SMA10 four-hour.
Further up, the previous week high of $1784 could challenge the bullish traders, as they look to retest the multi-week tops clinched a day before.
· Silver fell 0.2% to $25.75per ounce, palladium dropped 0.9% to $2,786.78 and platinum slipped 0.3% to $1,202.32.
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