Gold trades modestly lower as the greenback regains its poise. On the other hand, the shining metal remains inside familiar levels and is restricted to a narrow intraday range over the $1,700 mark. Midway through the European session, the market’s excitement dissipated, and European shares ended the day negatively. On the other hand, Wall Street is fighting to hold modest intraday gains but has at least reversed early losses.

The dollar maintains small gains across the board as traders are cautious ahead of the European Central Bank’s monetary policy decision. The news that European policymakers will debate a potential 50 basis point hike has boosted the common currency. However, the Union is in chaos due to gas shortages caused by its confrontation with Russia.

Meanwhile, US government bond rates fluctuate near their opening levels. As a result, the yield curve remains inverted as speculative interest anticipates an economic downturn in the near future. The yield on the 10-year Treasury note is currently just above 3%, while the yield on the 30-year note is about 3.20 percent.

Gold Technical Outlook

The latest transactions in gold have been limited within a bearish pennant pattern that appears on the chart. Consequently, breaching 1705.00 will offer negative motivation that will assist in pushing the price to break 1700.00 and confirm opening the way to our negative goals of 1650.00.

On the other side, a break of 1715.00 will cause the XAU/USD price to attempt a recovery and accomplish a bullish correction, with objectives beginning at 1735.25.

Today’s trading range is likely between 1685.00 support and 1725.00 resistance.

Today’s projected trend is bearish.