Little Changed In Asia; Dollar Pullback Provides Little Relief

Gold deals a shade below neutral levels to print ~$1,710/oz at typing, operating around the middle of Tuesday’s ~$15 range in fairly directionless Asia-Pac dealing.

• To recap, the precious metal closed marginally higher on Tuesday, with a continued pullback in the USD from last Thursday’s cycle highs (with the DXY recording a third straight lower daily close) countering an uptick in U.S. real yields.
• Gold continues to tread water above $1,700/oz, with daily trading ranges keeping below ~$20 in recent sessions, keeping it within sight of last Thursday’s 11-month lows ($1,697.7/oz, Jul 14). Bullion’s tepid performance comes despite weakness in the Dollar and sideways action in U.S. real yields, with participants likely awaiting the upcoming FOMC (July 26-27) as Fed hawkishness continues to take focus for the space.
• From a technical perspective, gold remains in a downtrend, with moving average studies continuing to point to bearish conditions. Previously-flagged technical levels remain in play, with support located at $1,690.6/oz (Aug 9 ‘21 low), and initial resistance situated at $1,745.4/oz (Jul 13 high).