Gold drops to $1290 region amid upbeat sentiment
- European stocks post decisive gains on Monday.
- 10-year US T-bond yield extends rebound.
- US Dollar Index continues to float above 97.
The risk-on mood at the beginning of the week weighs on traditional safe-havens such as the precious metal and the XAU/USD pair, which failed to break above the critical $1300 mark on Friday, was last down trading at $1290.5, losing $1.5 on a daily basis.
Upbeat PMI data from China and hopes of the U.S. and China moving closer to a trade agreement allowed global equity indexes to gain traction on Monday. At the moment, both the UK's FTSE and the Euro Stoxx 50 indexes are up around 0.5% while Germany's DAX is adding more than 1%. Reflecting the strong risk-appetite, the 10-year US T-bond yield is pushing higher for the third straight day. Similarly, the 0.7% increase in the S&P 500 Futures suggests that Wall Street is likely to start the day in the positive territory.
Later in the session, retail sales and manufacturing PMI data from the U.S. will be looked upon for fresh impetus. The US Dollar Index, which advanced to its highest level in more than two weeks at 97.34 on Friday, was last seen losing 0.15% on the day at 97.08.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
