Update: Gold now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading band, near two-and-half-week tops touched on Monday.
Investors drew comfort after the US Food and Drug Administration granted full approval to the Pfizer/BioNTech COVID-19 vaccine.
Meanwhile, worries that the fast-spreading Delta variant of the coronavirus could derail the global economic recovery eased fears about an imminent tapering of asset purchases by the Fed.
Investors also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium.
The yellow metal jumped the most since August 13 the previous day but lacks the fundamentals to cross the sturdy barrier to the north.
Among the lead leading factors challenging the market sentiment, also underpinning the price pullback, is a lack of clarity over the virus conditions and geopolitical concerns relating to Afghanistan and China.
On the same line, the UK’s daily hospitalizations jump to the monthly top whereas figures from the US also push the Biden administration to fasten the jabbing.
On the contrary, the UK’s calling of the emergency videoconference of the Group of Seven will increase hardships for Beijing-based companies’ listing challenge gold buyers.
Against this backdrop, the US 10-year Treasury yields gain one basis point to 1.26% whereas the S&P 500 Futures remain mildly bid at the latest.
Given the light calendar ahead of the speeches from the Jackson Hole Symposium, gold prices may rely on second-tier factors like US data and geopolitics for fresh impulse.
Though, a clear downside break of $1,752, also breaking the $1,750 round figure, will aim for the monthly low of around $1,688.
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