Gold retreats from multi-year tops, back near $1460 level
- Improving risk-sentiment undermined safe-haven assets and prompted some profit-taking.
- A modest bounce in the US bond yields/USD exerted some additional downward pressure.
- The recent escalation in the US-China trade disputes might help limit any further downside.
Having jumped to fresh multi-year tops earlier this Tuesday, Gold witnessed a some intraday profit-taking and has now retreated back closer to the $1460 level.
An intraday turnaround in the global risk sentiment was seen as one of the key factors that weighed on the precious metal's safe-haven demand and prompted some profit-taking, especially after the recent upsurge from the key $1400 psychological mark.
A slight improvement in investors' appetite for riskier assets was reinforced by a modest pickup in the US Treasury bond yields, which provided a modest lift to the US Dollar and exerted some additional pressure on the dollar-denominated commodity.
The negative factors, to a larger extent, were largely offset by the recent escalation in trade tensions between the world’s two largest economies, which continued lending some support to the precious metal and helped limit any deeper losses, at least for now.
Hence, it will be prudent to wait for a strong follow-through pullback before confirming that the commodity might have actually topped out and positioning for any further near-term corrective slide back towards the $1450-48 horizontal resistance breakpoint.
There isn’t any major market-moving economic data due for release from the US and hence, the key focus will remain on scheduled speeches by influential FOMC members, which might influence sentiment surrounding the non-yielding yellow metal and produce some short-term trading opportunities.
Technical levels to watch