Gold holds steady around $1810 level, bullish bias remains
- A combination of supporting factors extended some support to the precious metal.
- Fading hopes of a swift economic recovery dented investors’ appetite for riskier assets.
- Weaker USD, optimism over additional stimulus measures further underpinned the metal.
Gold lacked any firm directional bias on Monday and consolidated in a range, around the $1810 region through the early European session.
A modest pickup in the US dollar demand exerted some pressure on the dollar-denominated commodity during the early part of the trading activity on the first day of a new week. However, a combination of factors attracted some dip-buying and helped limit any deeper losses for the metal.
The greenback struggled to preserve its early gains, rather witnessed some fresh selling. This comes amid the continued surge in COVID-19 cases around the world, which dampened prospects for a sharp V-shaped global economic recovery and led to a fresh leg down in the equity markets.
The anti-risk flow was further reinforced by a weaker tone surrounding the US Treasury bond yields and underpinned the safe-haven metal. Adding to this, expectations for additional stimulus measures from the Eurozone and the US further extended some support to the non-yielding yellow metal.
However, it will be prudent to wait for some strong follow-through buying beyond the $1810 resistance zone before traders start positioning for any further near-term appreciating move. Bulls might then aim to surpass multi-year tops, around the $1818 region set on July 8.
There isn't any major market-moving economic data due for release from the US. Hence, the broader risk sentiment/the USD price dynamics might continue to play a key role in influencing the commodity's move and assist traders to grab some meaningful opportunities on Monday.
Technical levels to watch