Gold still in a tough spot below $1,800 for the time being
Gold is up 0.4% on the day after yesterday's decline but the mild bounce doesn't offer too much - at least from a technical perspective.
The low yesterday hit $1,769.65 and that came close to testing the pivotal 30 November low @ $1,764.80. As mentioned yesterday, the support level is one to keep an eye out for as we look at gold price action for the remainder of the week.
For now, the same factors at play for gold yesterday are also the ones playing out today.
The sentiment from the technicals aren't looking too healthy with ETF holdings also continuing to be trimmed, adding reasons for gold price to moderate further.
The reflation narrative is also one to keep an eye out for and while there is some divergence between gold and real yields as of late, the latter is also benefiting slightly from the latest resurgence in yields - now back above -1%.
As much as gold is hanging on for now, buyers need to push back above $1,800 to convince of any solid rebound higher. Otherwise, sellers are still largely in control currently.
As for a further downside break, the 30 November low @ $1,764.80 remains the key line in the sand to watch in the sessions ahead.
