Gold rebounds to $1,465 area as Trump downplays China trade deal
|- US Pres. Trump says he hasn't yet agreed to roll back tariffs.
- 10-year US Treasury bond yield erases daily gains on souring sentiment.
- US Dollar Index clings to gains above 98.30.
After slumping to its lowest level since early August at $1,456.33 in the early trading hours of the American session, the XAU/USD pair staged a recovery in the last hour with the precious metal finding demand amid souring market sentiment. As of writing, the pair was down 0.15% on a daily basis at $1,465.50. Despite this rebound, the pair remains on track to post its largest weekly loss of the year, erasing nearly $50.
US-China trade headlines continue to dominate markets
Reports suggesting that the United States (US) and China will be mutually rolling back tariffs as part of the phase-one of the trade deal provided a boost to the market sentiment and caused the safe-haven gold to lose interest. However, US President Donald Trump on Friday told reporters that he hasn't yet agreed to the reduction of tariffs to pour cold water on the optimism.
Reflecting the negative change in the risk sentiment, the 10-year US Treasury bond yield, which was up more than 1% on the day for the majority of the day, dropped into the negative territory in the last hour and Wall Street's main indexes pushed lower.
On the other hand, the US Dollar Index preserved its bullish momentum in the session and made it difficult for the pair to extend its recovery. At the moment, the index is up 0.23% on the day at 98.36. The data from the US today revealed that consumer confidence is expected to improve slightly in November with the University of Michigan's (UoM) Consumer Sentiment Index edging higher to 95.7 from 95.5 in October.
Technical levels to consider
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