Update: After rising to its strongest level since August 5 at $1,809.59 in the early trading hours of the American session on Tuesday, good lost its bullish momentum and not looks to close the day flat around $1,805.
Gold gained some positive traction during the early North American session and climbed to near three-week tops, around the $1,809 area in the last hour, albeit lacked follow-through.
Meanwhile, the worsening COVID-19 situation in the US might have convinced investors that the Fed would wait for a longer period before rolling back its pandemic-era stimulus.
That said, a positive opening in the US equity markets and an uptick in the US Treasury bond yields capped the upside for the non-yielding gold.
Powell’s comments might influence the market expectations about the next policy move by the Fed and help determine the next leg of a directional move for the precious metal.
Given that technical indicators on the daily chart have been gaining positive traction, some follow-through buying has the potential to lift the commodity back towards the $1,832-34 supply zone.
The next relevant support is pegged near the $1,729-28 region, below which gold might turn vulnerable to retest sub-$1,700 level, or monthly lows touched on August 9.
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 assets.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.
FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.
USD rebound, sluggish sentiment consolidate the heaviest daily jump in over a week.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice.