Gold climbs above $1275 despite impressive DXY rally
|- 10-year T-bond yield erases nearly 2% on Wednesday.
- Wall Street stays in the negative territory.
- US Dollar Index advances to its highest level since May 2017.
After easing toward the $1270 handle in the early NA session, the XAU/USD pair gained traction and recovered this week's losses as the precious metal finally capitalized on the flight-to-safety. As of writing, the pair was up 0.37% on a daily basis at $1277.
Some concerning earnings reports from large U.S. corporations, such as the Caterpillar, that highlighted weaker-than-expected sales in the Asia Pacific region weighed on the market sentiment today and helped Gold retrace yesterday's drop to 2019 lows. Confirming the risk-off mood, the 10-year US Treasury Bond yield is down 1.8% on the day while major equity indexes are posting modest losses between 0.2% and 0.1%.
On the other hand, the greenback also benefited from the risk-off atmosphere and posted strong gains against its major rivals, possibly limiting the XAU/USD pair's gains as well. At the moment, the US Dollar Index is at its highest level since May 2017 at 98.
Tomorrow's macroeconomic calendar will feature weekly jobless claims, durable good orders, and the Kansas Fed Manufacturing Activity Index from the U.S. Nevertheless, the risk perception is likely to remain as the primary driver of the precious metal's market valuation.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.