Gold edged higher through the early European session on Tuesday and is currently placed near the top end of its daily trading range, around the $1458-59 region.
A combination of supporting factors helped the precious metal to reverse an early dip to fresh two-week lows, around the $1451 region. The commodity turned positive for the day, snapping four consecutive days of losing streak, and has now recovered a major part of the overnight downfall.
Reviving safe-haven demand helped gain some traction
As investors looked past the recent positive US-China trade-related headlines, a softer tone around equity markets underpinned demand for traditional safe-haven assets. Reviving safe-haven demand helped the commodity to stall its recent downfall back closer to multi-month lows, tested earlier this month.
The prevalent cautious mood was further reinforced by a pullback in the US Treasury bond yields, which further drove flows towards the non-yielding yellow metal. Meanwhile, a subdued US dollar demand did little to hinder the intraday recovery move for the dollar-denominated commodity.
It, however, remains to be seen if the commodity is able to capitalize on the momentum or the attempted recovery move is still seen as a selling opportunity. Renewed hopes for a partial US-China trade deal might eventually turn out to be one of the key factors capping any strong gains.
Moving ahead, the US economic docket – featuring the release of the Conference Board’s Consumer Confidence Index and Richmond Manufacturing Index – will now be looked upon for some meaningful trading opportunities later during the North-American session on Tuesday.
Technical levels to watch
