Gold Price Analysis: XAU/USD refreshes session low, around $1920 area

• A combination of diverging forces failed to provide any meaningful impetus to the commodity.
• The upbeat market mood, surging US bond yields kept a lid on the attempted intraday uptick.
• Some renewed USD selling helped limit the downside ahead of the Jackson Hole Symposium.

Gold lacked any firm intraday directional bias and seesawed between tepid gains/minor losses through the mid-European session.

The emergence of some fresh selling around the US dollar assisted the dollar-denominated commodity to gain some traction during the first half of the trading action on Tuesday. However, a combination of factors kept a lid on the early uptick and held the precious metal well within the previous day's broader trading range.

The risk-on mood dented demand for traditional safe-haven assets, including gold. The global risk sentiment remained well supported by the optimism over a potential vaccine and treatment for the highly contagious coronavirus disease. This coupled with positive trade-headlines further boosted investors' confidence.

Apart from this, a strong pickup in the US Treasury bond yields further collaborated towards capping the upside for the non-yielding yellow metal. Despite the negative factors, the downside remains limited as investors seemed reluctant to place fresh bets ahead of the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium later this week.

Hence, it will be prudent to wait for some strong follow-through move in either direction before positioning for the commodity's near-term trajectory. The commodity was last seen trading near the lower end of its daily range, around the $1920 level, as investors look forward to the release of the Conference Board's Consumer Confidence Index for some trading opportunities.

Technical levels to watch