• Easing USD bearish pressure prompts some profit-taking. • Sliding US bond yields might continue to lend some support.
Gold surrendered majority of its early gains to the highest since August 2016 and quickly retreated back below $1360 level during the early European session.
The US Dollar tumbled to fresh three-year lows on comments by the US Treasury secretary Steven Mnuchin, saying that he welcomed a weaker currency, and continued benefitting the dollar-denominated commodity through the Asian session on Thursday.
A broad-based greenback sell-off receded a bit following IMF chief Christine Lagarde's comments and prompted some profit-taking at higher levels, especially after the recent upsurge of over 3% since last Thursday.
Further downside, however, seems more likely to be cushioned by a softer tone around the US Treasury bond yields, which tends to underpin demand for the non-yielding yellow metal.
Technical levels to watch
A follow-through retracement below the $1355 immediate support is likely to accelerate the corrective slide back below $1350 level towards its next support near the $1344 region.
On the upside, the $1365-66 area might now act as an immediate resistance, above which the metal is likely to aim towards testing July 2016 highs resistance near the $1375 region.
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.