- A sudden pickup in the US bond yields prompted fresh selling around gold in the last hour.
- The prevalent cautious mood could help limit deeper losses for the safe-haven commodity.
- Investors might also refrain from placing aggressive bets ahead of the FOMC policy decision.
A sudden pickup in the US bond yields prompted fresh selling around gold in the last hour. The prevalent cautious mood could help limit deeper losses for the safe-haven commodity. Investors might also refrain from placing aggressive bets ahead of the FOMC policy decision.
The precious metal has been struggling to capitalize on the recent bounce from multi-month lows and once again faced rejection near the $1,740-42 supply zone. The prospects for a relatively faster US economic recovery from the pandemic continued underpinning the US dollar. This, in turn, was seen as a key factor capping gains for the dollar-denominated commodity.
From a technical perspective, any subsequent slide is likely to find decent support around the $1,720-19 region, marking a short-term ascending trend-line extending from monthly lows. A convincing break below will be seen as a fresh trigger for bearish traders and set the stage for a slide back towards the $1,700 round-figure mark.
