Gold advances beyond $1,470 as US T-bond yields extend slide


  • 10-year US Treasury bond yield erases nearly 2% on Tuesday.
  • US President Trump threatens to raise tariffs if there is no deal with China.
  • US Dollar Index stays below 98 for second straight day.

The XAU/USD pair capitalized on the sour market sentiment in the second half of the day on Tuesday and rose above the $1,470 handle. As of writing, the pair was trading at $1,473.70, adding nearly $3, or 0.2%, on a daily basis.

Earlier in the American session, Bloomberg reported that the US side was softening its stance on the tariff rollback and sides were looking to use the near-deal from May as the benchmark for tariff reduction. Although these comments helped the market sentiment improve slightly, US President Trump reiterated that he will raise tariffs if they failed to reach an agreement on trade with China to help safe-haven assets find demand.

Reflecting the dismal mood, the 10-year US Treasury bond yield is losing nearly 2% on the day and the Dow Jones Industrial Average is down 0.4%. 

USD waits for FOMC meeting minutes

Meanwhile, after closing the first day of the week in the negative territory below the 98 handle on Monday, the US Dollar Index is moving sideways on Tuesday, allowing the risk perception to continue to drive the pair's action. The only data from the US revealed that Building Permits and Housing Starts both rose more than expected in October but was largely ignored by investors.

On Wednesday, the Federal Open Market Committee (FOMC) will be publishing the minutes of its October meeting.

Technical levels to watch for

XAU/USD

Overview
Today last price 1474.5
Today Daily Change 2.88
Today Daily Change % 0.20
Today daily open 1471.62
 
Trends
Daily SMA20 1484.46
Daily SMA50 1492.19
Daily SMA100 1480.17
Daily SMA200 1395.03
 
Levels
Previous Daily High 1473.95
Previous Daily Low 1456.54
Previous Weekly High 1474.6
Previous Weekly Low 1445.8
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1467.3
Daily Fibonacci 61.8% 1463.19
Daily Pivot Point S1 1460.79
Daily Pivot Point S2 1449.96
Daily Pivot Point S3 1443.38
Daily Pivot Point R1 1478.19
Daily Pivot Point R2 1484.78
Daily Pivot Point R3 1495.6

 

 

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