• Resurgent USD offset risk-off environment. • Long-unwinding adds to the selling pressure.
Gold came under some intense selling pressure during the early NA session and tumbled to session lows, eroding a major part of previous session's up-move.
Despite a selloff in global equity markets, which tends to underpin demand for traditional safe-haven assets, the precious metal failed to build on its early up-move and has now retreated over $10 from session high level of $1346.
A strong wave of US Dollar buying interest, backed by a goodish rebound in the US Treasury bond yields is turning out to be the only factor weighing heavily on dollar-denominated/non-yielding yellow metal.
The price-action also seems to indicate some long-unwinding pressure below $1340 level, which was seen lending some support through the mid-European session.
With markets shrugging off a strong risk-off environment, the USD price dynamics might continue to act as an exclusive driver of the commodity's momentum in absence of any major market moving economic releases.
Technical levels to watch
A follow-through weakness has the potential to continue dragging the commodity towards its next support near the $1328-26 region, below which the fall could get extended towards $1320 horizontal level.
On the upside, $1340 level now seems to act as immediate resistance, which if cleared could lift the commodity back towards $1345-46 supply zone en-route $1350 area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.