Gold has been volatile in recent weeks recording its all-time high on August 6, 2020 before losing around 4.7% in a single day. So far, the precious metal has managed to hover between $1,915 and $1,950. On August 26, 2020, gold managed to hold its weaker tone through the Asian and mid-European sessions; and was last recorded hovering near the lower end of its daily trading range in the $1,915-17 zone.
A mild pickup in the US dollar demand was witnessed as one of the major factors that exerted some pressure on the dollar-denominated commodity. That phenomenon coupled with some strong follow-through upsurge in the US Treasury bond yields; also contributed to the weaker tone that surrounds the non-yielding precious metal.
This price action comes amid optimism over a possible vaccine/treatment for the highly contagious COVID-19 disease; and reducing concerns about the US-China trade and diplomatic standoff. Nonetheless, a softer risk tone extended some support to the precious metal’s haven status and helped in limiting any additional losses.
But, gold remained depressed for the fourth consecutive session and marked its fifth day of a negative move in the past six. In the meantime, this downside is probably going to remain limited ahead of the Fed Chair Jerome Powell’s speech; on Thursday in the Jackson Hole Symposium.
This makes it advisable to wait for some follow-through selling below the past week’s swing low which formed around the $1,711 area. Then, traders can position themselves for any further near-term weakness if the bears dominate the markets. Meanwhile, August 26’s release of the US Durable Goods Orders will be considered for some trading impetus.