Gold was trading 0.21% down at $1901.85.
Gold was down on Wednesday morning in Asia from the near five-month high hit during the previous session over the release of better-than-expected U.S. economic data and a rise in bond yields.
Gold Futures were down 0.32% to $1,898.95 by 12:43 AM ET (4:43 AM GMT), falling back below the $1,900-mark. The dollar, which usually moves inversely to gold, inched up on Wednesday and the benchmark 10 year old U.S Treasury Yield rose to a more than one-week high.
U.S. Federal Reserve governor Lael Brainard also reiterated on Tuesday that the Fed is not ready to deviate from its current dovish monetary policy just yet. “Remaining steady in our outcomes-based approach during the transitory reopening surge will help ensure the economic momentum that will be needed as current tailwinds shift to headwinds is not curtailed by a premature tightening of financial conditions,” she said.
Across the Atlantic, the Eurozone consumer Index Price jumped 2% year-on-year in May, surpassing the European Central Bank’s target for the first time in over two years. This led to concerns over whether the central bank will keep its ultra-loose monetary policy in its policy decision due to be handed down in the following week.
In Asia, Australia reported a better-than-expected GDP as data released earlier in the day said that Gross Domestic Product grew 1.8% quarter on quarter and 1.1% year on year in the first quarter of 2021.
On the technical front, Gold, RSI stood at 69.900, the current price is trading Above the Moving Averages 20 & 50 . So, a Buy trade can be executed with the following target and stop-loss:
TRADE SIGNAL- Gold – Buy: 1900.50, TARGET:-1950.50, STOP LOSS:- 1875.50.