Gold: Remains on a back-foot around $1290 amid risk-on sentiment

• Optimism surrounding the US-China trade deal and Brexit helps build risk-on.
• The bullion has $1293 as immediate resistance with 100-day SMA level of $1282 being nearby support.

Gold is little changed around $1290 during initial Asian trading on Thursday as risk-on remains intact. The yellow metal earlier weakened as positive news for the US-China trade deal and Brexit helped build the risk sentiment. Investors may keep following headline risk events in order to look for fresh impulse.

The news reports suggesting that the US and China are closer to a trade deal and also conveying the UM PM Theresa May’s readiness to join the opposition Labour party in order to break the Brexit deadlock, together with British parliament’s support to no-deal Brexit, pleased traders off-late.

The yellow metal couldn’t take advantage of the US Dollar’s (USD) decline as traders turned to riskier assets in search of more returns.

The 10-year US treasury yield recovered further from its March-end lows of 2.352% to 2.528%.

While recent optimism surrounding the US-China trade deal and Brexit has already played its role, investors may look for additional details to remain on the positive path.

Chinese delegates led by Vice Premier Liu He are still in Washington DC while May-Corbyn is also discussing their ways to tackle Brexit problems. However, there are no major data up for release today.

Gold Technical Analysis

The bullion has been falling short of providing a daily close beyond $1293 that opens the door for its upward trajectory to $1300 and $1305 whereas 50-day simple moving average (SMA) level of $1309 could challenge buyers then after.

Meanwhile, 100-day SMA level of $1282, followed by $1280 and $1276, might limit the precious metal’s declines ahead of highlighting $1267 support.