The traditional metal commodity posted modest gains late in the Asian session yesterday amid high yields on US Treasury bonds that were able to depress the value of gold in the market.
With that, the US dollar's currency position experienced a high strengthening and limited the lackluster rise by gold.
Meanwhile, the price of gold is now at $2,357.30 which is down by 0.17% since it opened in the Asian trading session this morning.
However, the Wall Street stock market also faced losses as the yield on the US 10-year Treasury note rose sharply to its highest level since early May. This risk will continue to push gold down in the near future.
On Tuesday, the market held a press conference and several Federal Reserve (Fed) officials remained firm in their hawkish stance on current monetary policy. On the data front, the Conference Board's (CB) Consumer Confidence improved for May and fears that it will slip again.
This week, market participants should prepare for the release of the Personal Consumer Expenditure (PCE) Price Index data which is a measure of inflation for the Fed. The core figure is expected to be at 2.8% annualized and core PCE is expected to increase by 0.3% monthly.
From a technical point of view, gold is still intact at a high position even though its daily level is starting to show a lackluster momentum. The Relative Strength Index (RSI) shows that buying activity is gaining less traction and remains flat.
According to the latest position, the market places the first support level not far away at $2,350. Then it extended to the lowest position of May 8 at $2,303 followed by the low area of May 3 at $2,277.
If there is an increase, gold will continue its climb above $2,350 and then continue its high position in the $2,400 area followed by an ATH position at $2,450 and then at $2,500.
