Following yesterday’s limited recovery attempts, spot gold             prices are back under pressure. The yellow metal failed to keep above the $1,330 level and staged a retreat on Wednesday, threatening the $1,322 area once again.
The key driver behind the metal’s bearishness and lack of sustainable upside impetus is the dollar’s widespread rally, fuelled by the 10-year US Treasury yields that jumped above 3% for the first time in four years. Should the yields continue the ascent after a break of a psychologically important level, gold             could fall quite dramatically in the nearest future. The additional downside pressure on the yellow metal comes from easing North Korea tensions and the decreasing risk of a US-China trade war.
As for technicals, the prices are now within striking distance from the key 100-DMA around the $1,318 figure. The metal is trading above this line since late December. Should the mentioned level give up, we could see another bearish wave, probably, to $1,1312 in the medium term. To cancel this scenario, the asset needs to climb firmly back above $1,335 zone.