Gold rallies to near 4-week tops, around $1650 region

• Gold continued scaling higher through the early North-American session on Monday.
• Bulls seemed rather unaffected by a sharp turnaround in the global risk sentiment.
• Surging US bond yields underpinned the USD, albeit did little to hinder the momentum.

Gold built on its goodish intraday positive move and climbed to near four-week tops, around the $1648-50 region during the early North-American session.

Following the previous session's subdued trading action, the precious metal regained traction on the day of a new trading week and the uptick seemed rather unaffected by a combination of negative factors.

Bulls shrugged off a solid recovery in the global risk sentiment, as depicted by strong gains in the equity markets, instead took cues from concerns over the economic fallout from the coronavirus pandemic.

The risk-on mood was further reinforced by surging US Treasury bond yields, which underpinned the US dollar demand, albeit did little to dampen the bullish tone surrounding the non-yielding yellow metal.

Meanwhile, the fact that the commodity on Friday found acceptance above a one-month-old descending trend-line, the move up could be solely attributed to some follow-through technical buying.

Moreover, the price action also seems to indicate that investors are still playing safe amid expectations that the worst may not be over yet, which supports prospects for an extension of the bullish move.

Technical levels to watch