Yesterday the yellow metal has pulled back nearly $20 from seven-week highs of $1790 on Monday, finishing the day slightly in the red. In Tuesday’s trading so far, gold is consolidating losses before the bears can resume the correction declines. In the view of FXStreet’s Dhwani Mehta, XAUUSD eyes $1760-55 amid higher yields and bearish technical indicators.
“Higher US yields will likely remain a weight on the yieldless gold amid global optimism, as the economic calendar remains scarce on both sides of the Atlantic.”
Though US President Joe Biden displayed willingness to cooperate on his $2.25 trillion infrastructure bill, Republicans seem less willing and so are the markets. On the other hand, a bill to train the big tech firms weighed on the Wall Street benchmarks and US dollar at the week’s start.
Also, on the risk-negative side could be the COVID-19 worries arising from Europe and Asia. Moreover, the Russian build-up of military near the Ukrainian border also challenged the market sentiment.
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