Gold Price Analysis: XAU/USD slides to fresh session lows, closer to $1,780 level
Gold extended its steady intraday descent and dropped to fresh daily lows, around the $1,782 region during the mid-European session.
The precious metal witnessed a modest pullback from the vicinity of the $1,800 mark and has now eroded a major part of the previous day's positive move to the highest level since late February. A goodish intraday bounce in the US Treasury bond yields was seen as a key factor that prompted traders to lighten their bullish bets around the non-yielding yellow metal.
That said, a combination of factors could help limit any meaningful downside for the XAU/USD. Renewed fears about another dangerous wave of coronavirus infections in some countries continued weighing on investors' sentiment. This was evident from the prevalent cautious mood around the equity markets, which should extend some support to the safe-haven commodity.
Gold continues to rebound, despite Hawkish Powell’s letter
The price of gold rebounded further, despite hawkish Powell’s letter to Senator Rick Scott.
The second quarter of 2021 started much better than the first one for the gold bulls. As the chart below shows, the yellow metal rebounded from the late March bottom of $1,684 to $1,778 on Tuesday (April 20).
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