Gold slides to multi-day lows, below $1570
- The safe-haven gold was undermined by improving risk sentiment.
- A pickup in the US bond yields, strong USD added to the selling bias.
Gold edged lower for the second straight day and dropped to four-day lows, levels just below the $1570 region during the early European session on Tuesday.
The safe-haven commodity extended the previous session's retracement slide from near four-week tops and continues to be weighed down a strong recovery in the global risk sentiment.
Gold weighed down by a combination of factors
Efforts by the People’s Bank of China to cushion the economic impact from the outbreak of the deadly coronavirus and pledge to do more helped boost investors' appetite for perceived riskier assets.
This was evident from a positive mood around equity markets and reinforced by a goodish pickup in the US Treasury bond yields, which further drove flows away from the non-yielding yellow metal.
Meanwhile, the US dollar was being supported by Monday's stronger-than-expected rebound in the US ISM Manufacturing PMI and was also cited as a headwind for the dollar-denominated commodity.
It will now be interesting to see if the commodity is able to attract any buying interest at lower levels or continues with its corrective slide amid absent relevant market-moving US economic releases.
Technical levels to watch