Gold holds steady above $1770 level, bullish bias remains
- Gold witnessed some intraday profit-taking amid a modest bounce in the equity markets.
- Concerns about rising coronavirus cases, fresh USD selling helped limit any deeper losses.
- The set-up remains tilted firmly in favour of bulls and a possible move towards $1800 mark.
Gold extended its sideways consolidative price moves through the mid-European session and remained confined in a narrow trading band, around the $1770 region.
The commodity failed to capitalize on the previous day's strong intraday up move of around $25 dollar and witnessed a modest intraday pullback following an early uptick to the $1775 region earlier during the Asian hours on Monday.
A modest rebound in the global equity markets undermined demand for traditional safe-haven assets. Adding to this, a goodish intraday uptick in the US Treasury bond yields exerted some pressure on the non-yielding yellow metal.
However, fading hopes of a sharp V-shaped global economic recovery, coupled with the emergence of some fresh US dollar selling pressure helped limit any deeper losses for the dollar-denominated commodity, rather attracted some dip-buying.
This comes amid growing worries that a surge in new coronavirus cases might trigger renewed lockdown measures. This, in turn, should assist the metal to prolong its recent bullish trajectory and aim to reclaim the $1800 round-figure mark.
Monday's US economic docket features the only release of Pending Home Sales data. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in producing some meaningful trading opportunities.
Technical levels to watch