Gold climbs to the top end of over 1-week old trading range, around $1495 area
- Softer risk sentiment underpinned traditional safe-haven assets.
- Sliding US bond yields/subdued USD demand remain supportive.
- Bulls await a sustained breakthrough over a one-week-old range.
Gold edged higher through the early European session on Wednesday and is currently placed near the top end of a broader trading range held over the past two weeks.
The precious metal gained some follow-through traction on Wednesday and added to the previous session's modest uptick amid reviving safe-haven demand. The global risk sentiment deteriorated a bit on Tuesday after the UK lawmakers rejected the government's proposed timetable for passing legislation to ratify its Brexit deal.
Reviving safe-haven demand supportive
The global flight to safety was further reinforced by a fresh leg of a downfall in the US Treasury bond yields and further benefitted the non-yielding yellow metal. Adding to this, a subdued US Dollar demand remained supportive of the prevalent bid tone surrounding the dollar-denominated commodity - Gold.
Meanwhile, optimism over some progress reported in the US-China trade talks might offset the positive factors and keep a lid on any runaway rally for the commodity. Hence, it will be prudent to wait for a sustained breakthrough the recent trading range before positioning for any further near-term appreciating move.
In absence of any major market-moving economic releases, the broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the commodity's momentum and produce some short-term trading opportunities on Wednesday.
Technical levels to watch