Gold climbs to daily highs near $1,507 as US T-bond yields extend slide


  • Tensions remain high in the Middle East following the attack on Saudi oil facilities.
  • 10-year US Treasury bond yield loses more than 2% on Wednesday.
  • US Dollar Index struggles to find direction ahead of the FOMC's interest rate announcement.

The souring market sentiment in the second half of the day seems to be providing a boost to the safe-haven gold. As of writing, the XAU/USD pair was trading at fresh daily highs near $1,507, adding more than $5, or 0.4% on a daily basis.

Markets turn risk-averse on Wednesday

Ahead of the Federal Reserve's monetary policy decisions later today, the 10-year US Treasury bond yield is losing more than 2% on the day to suggest that investors are staying away from risk-sensitive assets. Reflecting the dismal mood, Wall Street's three main indexes stay in the negative territory.

Previewing the event, “We expect the Fed to cut the target range for the federal funds rate by 25 bps on September 18,” Rabobank analysts said. 

"In our view, the feedback loop between trade policy and monetary policy is likely to lead to another insurance cut before the end of the year, most likely in October.”

FOMC Preview: What 13 major banks are expecting from September meeting?

Markets also seem to be reacting to US President Donald Trump's response to the attack on the Saudi oil facilities. Earlier today, Trump tweeted out that he instructed the Secretary of the Treasury to "substantially increase" sanctions on Iran, keeping the geopolitical tension high in the Middle East.

Meanwhile, the US Dollar Index, which tracks the dollar's value against a basket of six major currencies, stays calm in its daily range below the 98.50 handle, allowing the risk perception to continue to drive the pair's action.

Technical levels to watch for

XAU/USD

Overview
Today last price 1506.8
Today Daily Change 5.40
Today Daily Change % 0.36
Today daily open 1501.4
 
Trends
Daily SMA20 1515.46
Daily SMA50 1478.61
Daily SMA100 1405.29
Daily SMA200 1349.11
 
Levels
Previous Daily High 1507.25
Previous Daily Low 1493.65
Previous Weekly High 1523.3
Previous Weekly Low 1484.9
Previous Monthly High 1554.63
Previous Monthly Low 1400.9
Daily Fibonacci 38.2% 1502.05
Daily Fibonacci 61.8% 1498.85
Daily Pivot Point S1 1494.29
Daily Pivot Point S2 1487.17
Daily Pivot Point S3 1480.69
Daily Pivot Point R1 1507.89
Daily Pivot Point R2 1514.37
Daily Pivot Point R3 1521.49

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs ahead of Barnier's speech, NFP

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold: Dives to fresh 1-month tops on stellar NFP report

Gold witnessed some aggressive selling in reaction to upbeat NFP report. Surging US bond yields, stronger USD contributed to the bearish pressure. A break below 50-day SMA might have paved the way for a further slide.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI refreshes multi-month tops above $38, OPEC+ to meet Saturday

WTI (July futures on Nymex) hit a new three-month high at 38.27 in the last hour, now consolidating the latest uptick just above 38.00, up nearly 2% on the day.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures