Gold Price Analysis: XAU/USD bears pause around two-week low above $1,700

Gold consolidates losses near the lowest since May 13 while taking rounds to $1,711/12 amid the early Asian session on Wednesday. The bullion dropped heavily the previous day as global markets shun safe-haven demand amid broad risk-on sentiment. Though the latest challenges to the US-China the US-Russia relations seem to probe the bears.

Having initially stepped back from attacking China’s move to grab powers in Hong Kong, US President Donald Trump cited sanctions on the Asian major coming by the end of the week. Also questioning the earlier optimism could be the statement from the US Navy suggesting that two Russian Su-35 jets "unsafely" intercepted a US Navy P-8 patrol aircraft.

Following the fresh news, S&P 500 futures parted ways from its benchmark on Wall Street by declining 0.10% to 2,991.

It’s worth mentioning that the bullion’s drop on Tuesday took clues from increasing calls of the major economic restart while also appreciating the global efforts to find a cure to the coronavirus (COVID-19).

Although the recent headlines have stopped the yellow metal sellers, for now, buyers are still waiting for a firm direction to benefit from the risk-off sentiment. As a result, the headlines concerning the US relations with China and Russia, as well as any major news concerning Hong Kong, could gain market attention amid a light calendar in Asia.

Technical analysis

A sustained break of the monthly support line, now resistance, keeps sellers hopeful of revisiting April 30 low near $1,670. Though, an upside clearance of $1,724 support-turned-resistance could question the short-term resistance line, stretched from May 18, around $1,730.