Gold prices rally has stalled last week at fresh multi-year highs around $1,555 last week. Since then, the precious metal turned into a consolidation mode with a bearish bias and struggles to regain the upside impetus amid the overbought conditions and a generally stronger dollar.
The greenback demand rose across the board, in part due to some recovery in the US Treasury yields as well as amid an aggressive sell-off in the euro. The common currency is trading at fresh more than two-year lows and now threatens the 1.09 figure. At that, the latest escalation in the US-China trade war failed to give a lift to the bullion as investors were prepared for another portion of tariffs.
In the short-term, upbeat ISM manufacturing survey could hurt the yellow metal further amid a robust USD demand. However, the downside potential in the gold market is limited at this stage as global investors remain cautious amid developments in the US-China, the UK, Hong Kong and Argentina.
Technically, the bullion needs to hold above $1.492 in order not to lose the upside impetus in the longer term charts. As long as the prices show consolidation above $1,515, chances of resuming the ascent remain high.
The greenback demand rose across the board, in part due to some recovery in the US Treasury yields as well as amid an aggressive sell-off in the euro. The common currency is trading at fresh more than two-year lows and now threatens the 1.09 figure. At that, the latest escalation in the US-China trade war failed to give a lift to the bullion as investors were prepared for another portion of tariffs.
In the short-term, upbeat ISM manufacturing survey could hurt the yellow metal further amid a robust USD demand. However, the downside potential in the gold market is limited at this stage as global investors remain cautious amid developments in the US-China, the UK, Hong Kong and Argentina.
Technically, the bullion needs to hold above $1.492 in order not to lose the upside impetus in the longer term charts. As long as the prices show consolidation above $1,515, chances of resuming the ascent remain high.