Gold consolidates in a range, around $1580 region

• Gold edges lower amid a modest rebound in equity markets.
• Concerns about coronavirus continued lending some support.
• A subdued USD demand further helped limit the downside.

Gold traded with a mild negative bias through the early European session on Tuesday, albeit remained well within the previous session's broader trading range.

The precious metal failed to capitalize on the previous session's bullish gap opening and a subsequent move to three-week tops. A modest rebound in the global risk sentiment – as depicted by signs of stability in the equity markets – turned out to be one of the key factors weighing on the precious metal's perceived safe-haven status.

The downside remains cushioned

The market sentiment, however, remained fragile amid concerns heightened anxiety about the economic impact of the outbreak of the virus in China. This was evident from a sharp intraday turnaround in the US Treasury bond yields, which extended some support to the non-yielding yellow metal and helped limit deeper losses.

Currently hovering around the $1580 region, the dollar-denominated commodity further benefitted from a subdued US dollar price action ahead of US macro releases. Tuesday's US economic docket features the release of Durable Goods Orders and the Conference Board's Consumer Confidence Index, which might produce some short-term trading opportunities.

Technical levels to watch