Gold held on to its modest intraday gains through the mid-European session, albeit lacked any follow-through buying. The commodity was last seen trading near the $1730 region, up 0.20% for the day. Following an early dip to weekly lows, the precious metal managed to regain some positive traction and recovered a part of the previous day's losses. The early uptick was supported by the ongoing decline in the US Treasury bond yields, which tends to benefit the non-yielding yellow metal.
Meanwhile, retreating US bond yields prompted some profit-taking around the US dollar, which was seen as another factor that underpinned the dollar-denominated commodity. However, a positive turnaround in the equity markets kept a lid on any meaningful upside for the safe-haven XAU/USD. Looking at the technical picture, the commodity has repeatedly struggled to capitalize on its move beyond the $1740-42 supply zone. Apart from this, the overnight break below a two-week-old ascending trend-line support might have already set the stage for further near-term weakness.