- Gold struggles to get any meaningful traction and remains confined in a variety on Tuesday.
- The risk-on impulse, elevated US bond yields appear to become a headwind for the commodity.
- The prevalent USD selling bias continues to provide support prior to the crucial US CPI report.
Gold lacks any firm direction on Tuesday and seesaws between tepid gains/minor losses, above the $1,720 level through the first European session. The XAU/USD remains below a nearly two-week high touched the prior day as investors now await the most recent US consumer inflation figures for a brand new impetus.
A survey released by the Federal Reserve Bank of NY on Monday showed that consumer expectations for all of us inflation on the coming years declined sharply to the cheapest level since October this past year. Hence, the united states CPI report will undoubtedly be viewed for signs of a sustained decline in US inflation. This may raise expectations for less aggressive policy tightening by the Fed, which, subsequently, may help gold to get some meaningful traction.
For the time being, the risk-on mood – as depicted by way of a positive tone round the equity markets – sometimes appears acting as a headwind for the safe-haven platinum. This, alongside elevated US Treasury bond yields, plays a part in capping the upside for gold. THE UNITED STATES dollar, meanwhile, languishes close to the monthly low touched the prior day and may continue steadily to lend some support to the dollar-denominated commodity, at the very least for the moment.
Heading in to the key data risk, investors also seem reluctant to put aggressive bets around gold and would rather proceed to the sidelines. That is viewed as another factor resulting in subdued/range-bound price action and warrants caution before positioning for an extension of the recent recovery from the sub-$1,700 round-figure mark.
Technical levels to view
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