Gold retreats to $1,500 area on recovering sentiment, USD strength
|- US Dollar Index climbs toward 98.50 in the early American session.
- Risk appetite returns to markets on US-China trade headlines.
- Major equity indexes in the US opened higher on Friday.
The tory ounce of the precious metal continues to have a difficult time breaking out of its tight weekly trading range. After edging higher to $1,507 area earlier in the day, the XAU/USD pair reversed its direction and was last seen trading a little above $1,500, adding around $2 on the day.
Earlier today, citing a source with knowledge of talks, Bloomberg reported that US President Trump was not looking to make a limited trade deal with China to revive hopes of the sides coming to terms next month in October when high-level negotiators get together for negotiations in Washington. With the initial market reaction, the 10-year US Treasury bond yield recovered its daily losses to reflect an improving risk sentiment.
On the same note, Wall Street's main indexes opened the day in the positive territory.
USD finds demand on Friday
On the other hand, the US Dollar Index gained traction in the last hour to further weigh on the pair. Boston Fed President Rosengren hawkish comments and the heavy selling pressure surrounding the major European currencies seem to be ramping up the demand for the Greenback.
Commenting on his decision to not vote for a rate cut at this week's Federal Open Market Committee (FOMC) meeting, "Additional monetary stimulus is not needed for an economy where labor markets are already tight, and risks further inflating the prices of risky assets and encouraging households and firms to take on too much leverage," Rosengren argued.
Technical levels to watch for
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