Gold edges up to $1490 area, lacks follow-through

Gold edged higher through the early European session on Tuesday and is currently placed at the top end of its daily trading range, around the $1489 re  |  22/10/2019 10:03
  • The overnight downtick remained limited amid a subdued USD demand.
  • A sharp intraday slide in the US bond yields extended additional support.

Gold edged higher through the early European session on Tuesday and is currently placed at the top end of its daily trading range, around the $1489 region.
 
Following an early tick lower to near one-week lows, the precious metal managed to regain some positive traction and recovered a part of the previous session's modest downtick. The US President Donald Trump's overnight comments raised hopes for a possible resolution of the prolonged US-China trade disputes and weighed on the precious metal's safe-haven demand.

Cautious mood helped gain some traction

However, a combination of supporting factors helped limit any follow-through selling, rather attracted some fresh dip-buying interest. A subdued US Dollar demand, amid firming expectations that the Fed will cut interest rates further at its upcoming meeting on October 29-30, was seen as one of the key factors lending some support to the dollar-denominated commodity - Gold.
 
This coupled with a sharp intraday fall in the US Treasury Yields, possibly in the back of a softer mood around equity markets, further underpinned the non-yielding yellow metal and remained supportive of the intraday uptick. The commodity remained well within a near two-week-old trading range, warranting some caution before placing any aggressive directional bets.
 
There isn't any major market-moving US economic data due for release on Tuesday and hence, the broader market risk sentiment, coupled with the USD price dynamics might continue to act as key drivers of any meaningful intraday momentum.

Technical levels to watch

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on finance
and other asset classes for Market Insight viewers

Back

Login to Market Insight Account

Your Market Insight account gives you access to the tools that we offer our customers including our
Technical Studies & Sentiment for your accounts.

Forgot Password?

Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

Create a Market Insight's Account

Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

register_ty

Thank you!

Welcome to Market Insight family!

You have succesfully completed the registration.
We will send you an e-mail to give you some
instructions and our Terms and Conditions!
Our account representatives will be contacting you as
soon as possible. If you have any further questions
please do not hesitate to mail us via info@marketinsight.com