- Gold saw sales for the fourth day in a row amid a slight recovery in USD demand.
- A softer risk tone has benefited traditional safe-haven assets and could help limit larger losses.
- Investors can also refrain from placing aggressive bets prior to the Jackson Hole Symposium.
Gold maintained its weaker tone throughout the mid-European session and was last seen hovering near the lower end of its daily trading range, around the 1915 $ 17 region.
A slight recovery in demand for US dollars was seen as one of the main factors putting some pressure on the dollar-denominated commodity. This, combined with a subsequent strong rally in US Treasury bond yields, further contributed to the weaker tone surrounding the unproductive yellow metal.
It comes amid optimism about a potential vaccine / treatment for the highly contagious coronavirus disease and allaying concerns about the U.S.-China diplomatic standoff. However, a softer risk tone extended some support for the safe-haven status of the precious metal and helped limit further losses.
Nonetheless, the product remained depressed for the fourth consecutive session, also marking its fifth day of negative developments over the previous six. Meanwhile, the decline is expected to remain limited ahead of Fed Chairman Jerome Powell’s speech Thursday at the Jackson Hole Symposium.
It is therefore prudent to wait for follow-up selling below last week’s low, around the $ 1,711 area, before traders begin to position themselves for any further near-term weakness. In the meantime, Wednesday’s release of US durable goods orders will be seen as a trade boost.