Gold steadily climbs back closer to $1900 mark, fresh session tops
- Gold attracted some dip-buying and stalled its retracement slide from three-week tops.
- A subdued USD price action was seen as a key factor lending support to the commodity.
- Improving risk sentiment undermined the safe-haven metal and capped any further gains.
Gold recovered around $15 from intraday swing lows and refreshed daily tops during the early European session, with bulls now eyeing a move beyond the $1900 mark.
The precious metal attracted some buying around the $1882 region and for now, seems to have stalled this week's retracement slide from three-week tops, around the $1933 level touched on Monday. A subdued US dollar price action was seen as one of the key factors that extended some support to the dollar-denominated commodity.
The USD struggled to build on its overnight gains amid fading hopes about the next round of the US fiscal stimulus measures and the US political uncertainty. This comes on the back of a setback in the COVID-19 vaccine development and a softer tone surrounding the US Treasury bond yields, which further drove flows towards the non-yielding yellow metal.
However, signs of stability in the equity markets undermined demand for traditional safe-haven assets and might keep a lid on any strong gains for the XAU/USD. This makes it prudent to wait for some strong follow-through buying interest before traders against start positioning for any further near-term appreciating move.
Market participants now look forward to the US economic docket, featuring the release of PPI figures. This, along with speeches by FOMC members, might influence the USD price dynamics and produce some short-term trading opportunities later during the early North American session.
Technical levels to watch