Gold is held at about 1,770 dollars

29.06.2020 15:17
Gold extended its sideways consolidated price movements, but remained confined to a narrow trading band, around $ 1,770. The commodity failed to capitalize on the previous day's strong intraday upward movement of almost $ 25 and witnessed a modest intraday pullback after rising early to $ 1,775 earlier in Asian trading hours on Monday. A modest recovery in global stock markets has eroded demand for traditional safe-haven assets.  In addition, positive intraday growth in US Treasury bond yields put some pressure on the non-yielding yellow metal. However, fading hopes for a sharp V-shaped global economic recovery, combined with the emergence of some new pressure from US dollar sellers, helped limit any deeper losses for dollar-denominated gold. This comes amid growing fears that an increase in the number of new cases of coronavirus could lead to renewed blocking measures.  This, in turn, should help the metal extend its recent bullish trajectory and aim to return to the round $ 1,800 mark. The US economic calendar on Monday contains the only information about pending sales.  Consequently, broader market risk sentiment and price dynamics in US dollars may continue to play a key role in creating significant trading opportunities.

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