Gold rebounds above $1560 ahead of US PMI data
|- 10-year US Treasury bond yield erased 1% on Friday.
- US Dollar Index stays in the positive territory near 97.80.
- Coming up: Markit Services and Manufacturing PMI data from US.
The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.
Risk sentiment drives gold's action
The World Health Organisation's (WHO) said coronavirus had not yet become a global health emergency and noted that it was too early to draw conclusions on its severity to help market sentiment improve.
However, the 10-year US Treasury bond yield, which spent a large portion of the day in the positive territory, lost its traction in the last hour and was last down 1% to suggest that investors are not yet eager to move away from safe-haven assets. With risk-off flows picking up steam in the early trading hours of the American session, the pair staged a rebound and was last seen trading at $1561, losing nearly $2 on the day.
In the meantime, the greenback is staying relatively strong with major European currencies struggling to find demand on Friday and making it difficult for the pair to make a decisive rally. Ahead of the preliminary Manufacturing and Services PMI data from the US, the US Dollar Index is up 0.15% on the day at 97.82.
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.