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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.

 

EUR/USD News

GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.

GBP/USD News

USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.

USD/JPY News

Gold slumps to $1,480 area on Brexit hopes

The troy ounce of the precious metal continued to weaken in USD terms in the American trading hours as markets cheered reports claiming that the European Union (EU) and the United Kingdom (UK) are closing in on a draft Brexit deal that could be announced before the end of the day on Tuesday.

Gold News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Forex MAJORS

Cryptocurrencies

Signatures