- A combination of divergent forces did not give the commodity a significant boost.
- The good mood in the market and the surge in US bond yields held back the attempt to rise intraday.
- Some renewed sales of US dollars helped to limit the decline before the Jackson Hole Symposium.
Gold lacked any strong intraday directional bias and flipped between lukewarm gains / minor losses through the mid-European session.
The emergence of new selling around the US dollar helped dollar-denominated commodity gain ground during the first half of the trade action on Tuesday. However, a combination of factors held back the early rise and held the precious metal well in the wider trading range from the previous day.
The risk mood dampened demand for traditional safe-haven assets, including gold. Global risk sentiment remained well supported by optimism about a potential vaccine and treatment for the highly contagious coronavirus disease. This, combined with positive trade headlines, further boosted investor confidence.
Apart from that, a strong rally in yields on US Treasuries helped to cap the rise of the unproductive yellow metal. Despite the negative factors, the decline remains limited as investors appeared reluctant to place any new bets ahead of Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium later this week.
Therefore, it will be prudent to wait for some tracking movement in both directions before positioning on the short term path of the product. The commodity was last seen trading near the lower end of its daily range, around the $ 1,920 level, as investors anxiously await the release of the Conference Board’s Consumer Confidence Index for some bargaining opportunities.