Gold slips back from $1,950.90 after two days of gains
Risk on trading on Wall Street amid tech recovery and pre-ECB optimism
Lockdown measures easing in Tokyo, Tiktok update and no negative Chinese data lifts mood.
Economic calendar is sparse ahead of the ECB.
Update: Could Fed clarification over allowing inflation to overrun boost Gold? Technically, the picture has improved after XAU/USD rebounded off the 50-day Simple Moving Average and momentum turned positive.
Gold declines to $1,945.80 in the Asian session on Thursday. After rising to a 2 week high on Wednesday, gold performed a U-turn from $1,950.90. The mood in the market is broadly upbeat, however a lack of drivers and pre-ECB nerves could explain XAU/USD’s recent pullback.
Traders await fresh impetus to continue the reversal. Risk barometer, the S&P 500 Futures advance 0.30% to 3,404 at the time of writing,. recovering from a one-month low yesterday as European Central Bank (ECB) optimism and TikTok owners request to not sell the whole company to the US picked up. Upbeat US JOLTS Job Openings data and Chinese inflation numbers which at least didn’t disappoint are adding to the markets optimism.
Additionally, news that Tokyo is easing lockdown conditions added to the upbeat mood.
In addition to risk on trading, a softer greenback for the first time in a week is buoying gold.
US – Sino tensions simmer away in the background in addition to Brexit deal uncertainty and US rescue package issues weigh on sentiment. Buyers are looking for a firm message from the ECB