Gold sidelined as risk-on prevails

• Gold struggles to find a direction and is trading in a tight range between 1,337 and 1,350.
• The risk-on mood trade on Wall Street and a strong US dollar keep the yellow metal sideways.

Gold is trading at around $1,343 a troy once inside Monday’s range. 

Since the start of the week, Gold is trading in a tight range between the 1,337 and the 1,350 levels reflecting the uncertainties on the geopolitical picture. 

Gold stays under the 1,400 resistance as over the weekend the US-led airstrike fired more than 100 missiles on strategic military facilities in Syria. The market saw it as an isolated event and not the start of a new war. Gold didn’t react as a safe-haven asset in that case. However, uncertainties remain with impending US sanctions on Russia and the ongoing trade war between US and China. 

Also keeping a lid on gold prices is the renewed USD strength saw in early European trading on Tuesday as well as the risk-on mood which is now prevailing in the equity market in the US. The three main indices, the S&P 500, the Dow Jones and the Nasdaq are shooting higher, breaking some important technical levels as investors are focusing on the earning season.

Gold 4-hour chart

The technical picture is rather neutral. Supports lie at 1,332.60 and 1,319.30 swing lows while resistances lie at 1,350.60 and 1,365.70 swing highs.