Gold abandons three week high to $1,814 price zone

Following Wall Street’s optimistic opening amid better market sentiment, as US Treasury yields kept advancing in thin trading, gold managed to jump to a fresh three-week high but rapidly returned around its $1,810 comfort zone, specifically, at the time of writing, the precious metal is in bracketing trading range at $1813.70 and is apparently struggling to hold above $1,814

Earlier during the US session, the Gold Index leapt to a fresh three-week high of $1,833.32 per ounce. Stocks advanced despite lukewarm US data, while the US dollar did not benefit much from rallying US Treasury yields.

The bullish momentum of the precious metal faded as the session went on, and instead of heading forward, gold prices fell back towards the current $1,810 price zone, retaining its long-term upward bias.

Market participants welcome news that US inflation is easing according to the core PCE Price Index released last Friday. Another catalyst for the positive sentiment came from China, as the country is further easing COVID-linked restrictions.