- Commodity rally boosts the demand for the precious metal on Monday.
- US Dollar Index fails to stay above the 97 mark.
- Wall Street erases a large portion of early gains.
The XAU/USD pair started the week on a strong note and advanced to its highest level in four weeks near $1235. As of writing, the pair was trading at $1234.35, adding 1%, or $12.15, on a daily basis.
Earlier in the day, the upbeat tone surrounding commodities led by a strong recovery witnessed in crude oil prices helped the precious metal gather strength against its rivals. Furthermore, a broad-based selling pressure surrounding the greenback provided an additional support to the pair.
Although the sharp upsurge seen in Wall Street amid easing trade concerns capped the pair's upside for a short period of time at the beginning of the NA session, the pair gained traction in the last hour as major equity indexes in the U.S. started to pare their early gains. The Dow Jones Industrial Average and the S&P 500, which both were up more than 1% in the first hour of the session, were last seen adding 0.6% on the day.
On the other hand, falling T-bond yields in the U.S. and mixed manufacturing PMI data make it difficult for the greenback to find demand. At the moment, the US Dollar Index is down 0.3% on the day at 96.90.
- US: Markit Manufacturing PMI falls to 55.3 vs 55.4 expected.
- US: ISM Manufacturing PMI rises to 59.3 vs 57.5 expected.
Technical levels to consider
The initial resistance for the pair aligns at $1236 (Nov. 7 high) ahead of $1243 (Oct. 26 high) and $1248 (Jul. 12 high). On the downside, supports are located at $1220 (daily low/50-DMA), $1211 (Nov. 28 low) and $1200 (psychological level).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.