- European stocks post modest losses on Tuesday.
- 10-year US T-bond yield drops to weekly lows.
- US Dollar Index fails to recover to 97 area.
After closing the first day of the week $5 higher despite the subdued market action, the troy ounce of the precious metal continued to gather value in USD terms and reached its highest level since April at $1334.44. As of writing, the XAU/USD pair was up 0.56% on the day at $1333,70.
Today's uninspiring ZEW sentiment data from the euro area and Germany kept investors from risky assets and boosted the demand for safe-havens such as gold. Major European equity indexes stay under pressure with Germany DAX and the UK's FTSE losing 0.3% and 0.55%, respectively, at the time of press. Additionally, Wall Street started the day in the negative territory dragged lower by heavy losses in financials and industrial sectors.
Reflecting the dismal mood, the 10-year US T-bond yield is also losing 0.8% on a daily basis and weighing on the greenback. The US Dollar Index, which recorded losses in the last three trading days, recovered to the 97 area earlier in the day but failed to preserve its momentum and was seen virtually unchanged near 96.80.
With the U.S. economic docket not offering any significant macroeconomic data releases in the remainder of the day, the pair's action could continue to be impacted by the markets' risk perception.
Key technical levels
XAU/USD
Trends:Daily SMA20: 1308.7
Daily SMA50: 1287.04
Daily SMA100: 1255.79
Daily SMA200: 1232.99
Levels:
Daily Fibonacci 38.2%: 1330.66
Daily Fibonacci 61.8%: 1326.86
Daily Pivot Point S1: 1326.08
Daily Pivot Point S2: 1315.36
Daily Pivot Point S3: 1310
Daily Pivot Point R1: 1342.16
Daily Pivot Point R2: 1347.52
Daily Pivot Point R3: 1358.24
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
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.