Gold continued with its struggle to build on this week's modest gains and has been oscillating in a range over the past three trading sessions. Currently trading below the $1,780 level, the prevalent risk-on mood was seen as a key factor that acted as a headwind for the safe-haven gold. Apart from this, a modest pickup in the US Treasury bond yields further collaborated to cap the upside for the non-yielding gold. That said, a softer tone surrounding the US dollar extended some support to the dollar-denominated commodity and helped limit the downside.
Gold prices aim for four-month-old horizontal support near $1,960. However, any further weakness needs a daily closing below $1,755, comprising the mid-March tops, to keep sellers hopeful. Should the quote stays pressured below $1,755, April 13 low near $1,745 and the $1,700 threshold may act as intermediate halts during the south-run to the yearly low surrounding $1,675. Meanwhile, an upside clearance of 100-DMA, around $1,793, will seek validation from the $1,800 round-figure before targeting the early May’s swing high near $1,845. Though, gold’s upside past $1,845 will have a bumpy road that starts with $1,855 and ends on the commodity’s daily close beyond $1,910. To sum up, gold sellers do firm the reins but aren’t in full control and hence need fresh catalysts to portray a decisive move.