This was evident from a sharp intraday spike in the US Treasury bond yields on Friday, which kept a lid on any further gains for the non-yielding gold.
In fact, the yield on the benchmark 10-year US government bond jumped back above 1.32%, which, in turn, provided a much-needed respite to the US dollar bulls.
The downside, however, remains cushioned amid relatively thin liquidity conditions on the back of a holiday in the US.
An absence of the US and Canadian traders join sluggish economic calendar and the coronavirus woes to weigh on the market sentiment, underpinning the gold price weakness.
Gold’s pullback from the seven-week top could be best linked to the mildly offered stock futures and Treasury yields, favoring the US Dollar Index .
This week comprises three key central bank meetings, namely the ECB, RBA and BOC, which in turn keeps the traders on their toes and curtail the previously risk-on mood.
Moving on, global markets are likely to remain inactive as American and Canadian traders enjoy an extended weekend.
Alternatively, a daily closing beyond $1,834 becomes necessary for the bulls to progress towards the early June’s low near $1,856.
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EUR/USD stays directed towards 1.1900 amid fresh US dollar weakness, as the risk-on trading dominates.
ECB hawks brace for Thursday, falling covid cases add to the market’s optimism.
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