Gold clings to gains near session tops, around $1575 region
- The safe-haven gold regains traction amid renewed coronavirus concerns.
- Sliding US bond yields remained supportive of the intraday positive move.
- Investors now look forward to the US inflation figures for a fresh impetus.
Gold held on to its intraday gains through the early European session on Thursday and is currently placed near the top end of its daily trading range, around the $1574-75 region.
The precious metal caught some fresh bids on Thursday and built on the overnight bounce from weekly lows. A fresh wave of global risk-aversion trade amid resurfacing concerns over the outbreak of the deadly coronavirus provided a goodish lift to traditional safe-haven assets, including gold.
Gold supported by fresh coronavirus concerns
The global risk sentiment took a knock after China's Hubei province reported a sharp jump in the death toll/confirmed cases. The risk-off mood was further reinforced by weaker US Treasury bond yields, which provided an additional boost to the non-yielding yellow metal.
It, however, remains to be seen if bulls are able to capitalize on the momentum or the uptick once again meets with some fresh supply at higher levels. Fading prospects for any further interest rate cuts by the Fed might turn out to be the only factors capping gains.
It is worth recalling that the Fed Chair Jerome Powell, in his second day of testimony, did not provide any clues about any further rate cuts, rather suggested there were no reasons for the Fed to cut rates as the economy remained in a good place.
Moving ahead, market participants now look forward to the US economic docket – highlighting the release of the latest consumer inflation figures. This might influence the US dollar price dynamics and provide some impetus to the dollar-denominated commodity.
Technical levels to watch