Gold slides back on improved risk sentiment, below key trend line resistance

Gold spot is currently trading $1,284.35 with a high of $1,295.85 and a low of $1,281.24.

• Forex today: dollar corrects in an improved risk-on session

Gold prices took a turn later in the US session as the dollar and yields picked up as did risk sentiment. US stocks continued to rally into the close while US yields, with a day's range between 2.1966 - 2.2587, were looking to up by 0.55% on the day. The DXY recovered from the 100.00 lows on the day, albeit still finishing in the red by -0.22%, and did so on the back of The Financial Times that published a story on a recent interview that was conducted with Steven Mnuchin, the United States Secretary of the Treasury. 

In stark contrast to Trump's recent jawboning on the US dollar and concerns over delays to tax reform, Mnuchin still expects a tax deal in 2017 while stressing the longer term benefits of dollar strength. The sentiment quickly turned from the tensions between the U.S. and North Korea that has otherwise been helping the precious metal to hold ground at its highest level in more than five months. However, ongoing tensions in North Korea could keep investors nervous and that should support the demand or the safe-haven precious metal.

Gold levels

The Gold price remains capped below the recent highs of 1295.50 with stochastic that has reached a threshold of the oversold areas. This could support the probability of the price bouncing bullishly to resume the bullish trend again while still trading above 1263.17. To the upside, 1300.00 remains the psychological target ahead of 1337.00 and Nov highs. To the downside, with the price drop below the daily trend line of resistance at 1290, 1271 and 11th April lows guard 1252 and 10th April lows. 1240 is a key support thereafter.