Update: Gold is perking up as we move through the Asian session and mid-day markets in Sydney while the greenback wobbles to the lows of the day as measured by the DXY.
Update: Gold woes and upbeat statistics, could be held responsible for gold’s earlier downside.
It’s worth noting that worsening covid conditions in Asia-Pacific may exert downside pressure on gold while further weakness in Chinese activity can also please the bears.
Following last week’s consolidation, gold traded in a relatively tight range on Monday.
Additionally, technical buying pressure seems to have strengthened after gold broke below the lower limit of last weeks range at $1,760.
During the European trading hours, the 2% increase seen in the benchmark 10-year US Treasury bond yield provided a boost to the greenback.
There won’t be any high-tier macroeconomic data releases in the remainder of the day and the USD’s market valuation is likely to remain the primary driver of XAU/USD’s action.
On the daily chart, the Relative Strength Index indicator dropped to 30, suggesting that gold could make a technical correction before the next leg down.
On the other hand, the initial hurdle aligns at $1,785 .
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GBP/USD edges lower around the weekly bottom, stays directed to five-month-old support.
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