Gold (XAU/USD) climbed higher in the early European session and was last spotted trading near the top of its daily range, around the $1,778 level.
A fresh US dollar selling impulse aided the dollar-denominated commodity to retrace from an early dip to the $1,770 area in the Asian session. This coupled with the ever-concerning rise in Coronavirus cases globally extended some support to the safe-haven appeal of the yellow metal.
Despite increasing market concerns, the global risk tone remains supported by the growing optimism for a V-shaped global economic recovery. The risk-on bias was bolstered by a positive pickup in the US Treasury bond yields, which capped any significant gains for the non-yielding metal.
Meanwhile, market participants will be looking at the US economic docket for market direction clues, which features the US ISM Non-Manufacturing PMI, which could have an influence on the price dynamics of the USD and could provide some support.
Gold (XAU) Value Forecast — July 6
XAU/USD Major Bias: Sideways
Supply Levels: $1,779, $1,790, and $1,800
Demand Levels: $1,770, $1,765, and $1,758
Considering the surrounding market sentiment, we could see a slight retrace in gold from its current levels to the $1,770-65 support region. However, any drop from this region will be considered as a dip-buying opportunity for traders as there is a strong confluence of indicators to the downside, especially around the $1,770 region.
On the flip side, buyers are likely to steal the show once gold breaks above the $1,780 level. A bullish wave from that level will send us ever so close to the $1,800/oz target.
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