Gold is down by 0.7% to session lows currently
Sellers are still in near-term control as they hold off buyers from a move back above the key hourly moving averages since overnight trading. That keeps the near-term bias still in their favour and with the risk mood more optimistic today, gold is inching lower on the session.
US Treasury yields are pushing higher with 10-year yields up by 3.4 bps to 1.59% and we're also seeing equities gain further ground on the day. European stocks are firming alongside US futures, which are up by 0.5% currently.
We've been seeing a lot of back and forth action in risk sentiment this week and it's hard to really read much into all of this as markets remain choppy awaiting for fresh remarks from the Fed later this week.
The July FOMC meeting minutes will be a risk event later today but I don't think it'll offer much as markets are more focused on what to expect in September. As such, fresh remarks at Jackson Hole will hold more weight. That said, it's still prudent to keep your eyes and ears peeled just in case later today.
For gold, there is some near-term support around the swing region close to $1,494 next but further support is only seen closer to $1,490 and the 38.2 retracement level @ 1,483.72.
The risk for sellers now is if price turns around - reckon it requires the risk mood to sour for that to happen - and moves back towards a test of the key hourly moving averages.
