Gold traded sideways throughout the Asian and the London session as escalating trade tension between the U.S. and China kept it supported.
It fell around 0.1% at $1,282.45 per ounce during the Asian trading.
However, just a few minutes back, there has been a sharp drop in Gold from 1,283 level to 1,277. Honestly, I couldn’t find any headline behind the quick drop in gold prices, but it comes as U.S. traders return from a long weekend.
The trading activities in markets are calm so that may have taken some of the premia out of Gold, but I presume this is actually about flows. There had been countless chatter about Venezuela business, and that could be the driver.
The U.S. dollar DXY, +0.20% ticked higher on Tuesday. The ten years Treasury Bonds, -1.59% yield retreated to its lowest since Oct. 2017. A firmer greenback can hurt Gold and other commodities priced in dollars. So this can be one of the reasons behind such a sell-off.
On the technical front, it’s another failed bounce for Gold but there is plenty of support from $1270-$1262, so I don’t envision any more in-depth breakdown.