Gold pulls back from multi-year top to $1,563 as US-Iran wires are quiet

• Gold buyers catch a breath after rising to 6.5-year high during the previous day.
• A lack of fresh war threats from either the US or Iran seems to have hit the Bullion’s latest safe-haven demand.
• Markets will now keep eyes on macros, coupled with the US data, for immediate direction.

Gold prices extend the U-turn from mid-Monday while making rounds to $1,564 during Tuesday’s Asian session. The yellow metal seems to lack the updates on the US-Iran war-threats that earlier propelled it to the multi-year tops.

While the latest news from Washington Post (WaPo) signals that the US military can strike Iranian cultural cites and isn’t leaving Iraq, an absence of clear war threats from the Middle East is something that favors the recent risk recovery.

Furthermore, the US-China phase-one trade deal is about to be signed in next week and can be considered as another reason for the Bullion’s pullback.

Also, the global leaders’ push for de-escalation of the US-Iran war tension and upbeat Markit Composite PMI data from the major economies could also have favored the trading sentiment.

As a result, the US 10-year treasury yields seesaw near 1.81% whereas the S&P 500 Futures also mark gains around 3,244.

While the US ISM Manufacturing PMI, Factory Orders and Trade Balance will help the economic calendar to remain in the spotlight, the trade/political news will keep the driver’s seat.

Technical Analysis

Gold sellers look for entry below September month high, near $1,557, whereas buyers can take aim at $1,600 on the break of the recent high surrounding $1,587.