The XAU/USD pair pushed lower in the early trading hours of the European session to touch its lowest level in more than two weeks at $1273.75. Although the pair was able to find support there, it has struggled to stage a meaningful recovery and gone into a consolidation phase below the $1280 level. Amid the fact that there were no fresh developments surrounding the US-China trade conflict, which became the primary driver of the market's risk perception, the 10-year US Treasury bond yield rebounded today to suggest that investors don't feel the need to flee to safer assets to make it difficult for Gold to find demand.
Gold prices traded near flat during yesterday's session after hitting a new low at $1273.75 per ounce. The price is currently hovering around the $1277.18 support level and looking more probable to edge higher with the momentum fleeing the oversold zone. We expect a minor correction in the prices and the level to watch will be the $1280.11 resistance level.
Support: 1274.72 / 1271.85
Resistance: 1277.18 / 1280.11