Gold eases from multi-day tops, still well bid above $1900 mark
- Gold regained positive traction on Monday amid some heavy selling around the USD.
- The risk-on mood, surging US bond yields kept a lid on any strong positive momentum.
Gold spiked to multi-day tops, around the $1918 region during the early North American session, albeit quickly retreated around $10 thereafter.
The precious metal managed to regain some positive traction on the first day of a new trading week and built on last week's rebound from the $1882 region. The uptick marked the third day of a positive move in the previous four and was exclusively sponsored by the emergence of some fresh selling around the US dollar, which tends to benefit the dollar-denominated commodity.
However, the upbeat market mood – as depicted by a positive opening in the US equity markets – undermined demand for traditional safe-haven assets and kept a lid on any strong gains for the XAU/USD. The global risk sentiment was supported by reviving hopes for additional US fiscal stimulus and expectations of a COVID-19 vaccine by the end of this year.
The risk-on mood was reinforced by a strong intraday upsurge in the US Treasury bond yields, which further collaborated towards capping gains for the non-yielding yellow metal. Nevertheless, the XAU/USD has still managed to hold with modest daily gains and was last seen trading just below the $1910 region.
In the absence of any major market-moving economic releases from the US, the broader market risk sentiment will influence the safe-haven demand for the XAU/USD. This, along with the USD price dynamics might further assist traders to grab some meaningful opportunities.
Technical levels to watch