Gold Futures Pare Gains in Directionless Trading

Gold futures slip, returning gains made earlier in the session. Futures are down 0.2% at $3,293.70 a troy ounce.

The precious metal had hit an all-time record of $3,509.90/oz just five weeks prior, with technical trading indicators showing it was strongly overbought at the time, Trade Nation's David Morrison says in a note. A selloff since then has brought trading indicators back towards neutral levels.

While that means gold has the potential to rally from here, the path forward remains unclear, Morrison says. Gold could already have fulfilled its potential for new highs now, though some in the market believe the yellow metal will continue to act as a safe-haven as investors fret about high U.S. government debt levels, Morrison adds.