Gold price consolidates near 6-week tops, just above $1350 level

London (Mar 27)  Gold seesawed between tepid gains/minor losses and was seen consolidating overnight gains to 6-week tops.

A combination of diverging forces failed to assist the commodity to build on its bullish momentum and led to a range-bound subdued price action through the early European session on Tuesday.

Reviving investors' appetite for riskier assets, amid receding trade war fears, dented the precious metal's safe-haven appeal. This coupled with a renewed uptick in the US Treasury bond yields further collaborated towards capping gains for the non-yielding yellow metal.

However, persistent weaker tone surrounding the US Dollar, to a larger extent, offset the negative factors and might continue to help limit any deeper fall for dollar-denominated commodities - like gold.

Later during the NA session, the release of CB's US Consumer Confidence Index, followed by Atlanta Fed President Raphael Bostic's scheduled speech would now be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Immediate resistance is pegged near $1360 area, above which the commodity seems all set to head towards challenging 2016 highs resistance near the $1375 region. On the flip side, retracement back below $1350 level, leading to a subsequent drop below $1346 area, might prompt some additional profit-taking slide back towards $1337-35 support zone.

FXstreet