- Gold remained depressed for the fourth day in a row amid a slight rise in the US dollar.
- Concerns about the US economic recovery could help limit larger losses.
- US macroeconomic data was expecting a boost ahead of the Jackson Hole symposium.
Gold fell slightly at the start of Wednesday’s European session and fell to new daily lows, around the $ 1,915 region in the past hour.
The precious metal extended this week’s retracement slide from the $ 1962 region and remained depressed for the fourth straight session on Tuesday. The decline also marked the fifth day of a negative move in the previous six and was supported by a slight recovery in demand for the US dollar, which tends to undermine the dollar denominated product.
Tuesday’s disappointing release of the U.S. Consumer Confidence Index fueled concerns about the economic recovery in the United States and provided a slight boost to the greenback’s status as a global reserve currency. This comes on the back of optimism about a potential vaccine / treatment for COVID-19, which further hurt the product’s safe-haven status.
Apart from that, a strong rally in US Treasury bond yields was seen, putting pressure on the unproductive yellow metal. However, investors’ reluctance to place aggressive bets ahead of Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium could help limit larger losses for the product, at least for now.
Market players are now eagerly awaiting orders for durable goods from the United States. Unless there is a significant deviation from expected numbers, the data is unlikely to provide a significant boost. Therefore, it will be prudent to wait for strong follow-up selling before positioning for an extension of the recent steep correction decline from the record highs of August 7.