Gold recovers early lost ground, back above $1900 mark ahead of US data
- Gold reversed an early dip to $1887 region amid some renewed USD selling bias.
- A pickup in the US bond yields, the upbeat market mood might cap the upside.
- Investors now eye US ISM Non-Manufacturing PMI for some trading opportunities.
Gold managed to recover a major part of its early lost ground to two-day lows and has now moved back above the $1900 mark, closer to the top end of its daily trading range.
The positive news about the US President Donald Trump’s coronavirus infection boosted investors' confidence. This was evident from a goodish rebound in the equity markets, which dented demand for traditional safe-haven assets and exerted some pressure on the XAU/USD.
A strong pickup in the US Treasury bond yields reinforced the risk-on mood and further collaborated towards driving flows away from the non-yielding yellow metal. However, the emergence of some fresh selling around the US dollar helped limit losses for the dollar-denominated commodity.
This comes amid political uncertainty ahead of the US presidential election on November 3rd, which extended some additional support to the safe-haven precious metal. The XAU/USD was last seen trading around the $1902 region, nearly unchanged for the day, awaiting US macro data.
Monday's US economic docket highlights the release of ISM Non-Manufacturing PMI. The data might influence the USD price dynamics. This, along with the broader market risk sentiment, will play a key role in driving the XAU/USD on the first day of the week.
Technical levels to watch