Gold futures edged higher Tuesday after back-to-back declines as investors assess demand for the yellow metal as worries about the spread of the delta variant of the coronavirus that causes COVID-19 roil financial markets.
Gold edged lower Tuesday despite a sharp stock-market selloff and a flight to safety that accelerated a fall in U.S. Treasury yields, sending the 10-year note
to its lowest since mid-February. The 10-year yield declined further on Tuesday after a round of mixed data on U.S. housing.
“Gold was steady despite yesterday’s equity market sell off with the price continuing its slow dance above $1,800,” said Pierre Veyre, technical analyst at ActivTrades, in a note.
“However, the technical configuration isn’t reassuring to investors as the market recently broke out of its short-term bullish trend line following a 50% bullish retracement of the last bearish impulsion from the $1,900 zone,” he said.
The short-term outlook for gold remains bearish as long as the price doesn’t top $1,820 an ounce, Veyret said, with $1,794 and $1,782 the next support zones.