Yellow metal moved lower on Tuesday following the long US holiday weekend. Gold prices were same on Monday with low volume. US yields shot higher on Tuesday rising 7-basis points and hitting the highest levels seen since February 2020. The uptrend momentum in US yields is adding support on the US dollar and weighing on gold.

Adding to it, US fiscal stimulus and vaccine optimism further supports the dollar, the expectations for higher global inflation drove the benchmark. Attention turns towards the US Retail Sales data and the FOMC minutes for fresh near-term trading opportunities in gold.

TikTok’s parent company ByteDance refuted reports that it is in preliminary talks to list the video app on the New York Stock Exchange (NYSE), China’s highly influential newspaper, Global Times, reported on Wednesday. The media outlet said: “ByteDance responded Wed that the previous media reports over the company being in preliminary talks to list TikTok in New York was not true.”

Earlier today, Global Times cited sources, saying that ByteDance was in preliminary discussions to list TikTok on the NYSE. Despite the denial from ByteDance, the risk sentiment is recovering amid US President Joe Biden’s upbeat remarks on the covid vaccinations.

Elsewhere, US President Joe Biden recently appeared for CNN’s townhall interview wherein he tried to downplay the British moves while promising the coronavirus (COVID-19) vaccine to all the Americans by July 2021.The US leader also highlighted covid vaccine manufacturer Pfizer and Moderna’s fast delivery while saying, “Pfizer and Moderna sped up delivery of vaccine using the US Defense Production Act (DPA).”

XAU/USD 4 Hour Chart:

Support: 1780.6 (S1), 1766.5 (S2), 1743.6 (S3).

Resistance: 1817.6 (R1), 1840.5 (R2), 1854.5 (R3).

Amidst all the catalysts favoring US dollar against the yellow metal, we expect a bearish trend for XAU/USD.