Gold climbs to fresh weekly tops, above $1510 level
- Weaker USD/sliding US bond yields helped build on the overnight bounce.
- US-China trade pessimism further benefitted the metal’s safe-haven status.
Gold edged higher through the early North-American session on Thursday and climbed to fresh weekly tops, just above the $1510 region in the last hour.
A combination of supporting factors helped the precious metal to gain some follow-through traction for the second consecutive session on Thursday and build on the overnight post-FOMC rebound from over one-week lows.
Weaker USD/risk-off mood supportive
The US Dollar remained depressed in the wake of less hawkish FOMC statement on Wednesday and continued underpinning demand for the dollar-denominated commodity. This coupled with a fresh wave of global risk-aversion trade, as depicted by a weaker trading sentiment around equity markets, provided an additional boost to the precious metal's perceived safe-haven status.
The global risk sentiment took a knock on Thursday in reaction to a Bloomberg report, suggesting China is casting doubts over a long-term trade deal with the US. The global flight to safety triggered a fresh leg of a freefall in the US Treasury bond yields, which further dented the already weaker sentiment surrounding the Greenback and collaborated towards driving flows toward the non-yielding yellow metal.
It, however, remains to be seen if bulls are able to maintain their dominant position or the positive momentum once again fizzles out near the $1516-18 supply zone as market participants start repositioning for Friday's release of the closely watched US monthly jobs report – popularly known as NFP.
Technical levels to watch