- US Dollar Index climbs to two-week highs near 97.80.
- 10-year T-bond yield rises more than 1% on Thursday.
- Upbeat sentiment boosts stocks as well.
The precious metal lost value in USD terms on Thursday with the prevalent risk-on atmosphere making it difficult for the precious metal to find demand as a safe-haven. As of writing, the XAU/USD pair was down 0.8% on the day at $1286.
The lack of fresh headlines surrounding the U.S.-China trade conflict and some upbeat earnings figures from large U.S. corporations, such as retail giant Walmart, provided a boost to the market sentiment today. Major equity indexes in the U.S. started the day in the positive territory with the CBOE Volatility Index, Wall Street's fear gauge, dropping to its lowest level since early May to confirm the stronger risk-appetite.
Furthermore, after slumping to its lowest level since late March, the 10-year US T-bond yield gained traction and was last seen adding more than 1% on the day. Supported by the upsurge in bond yields, the US Dollar Index staged a decisive rebound and touched its highest level in two weeks above 97.80, allowing the bearish pressure to remain intact.
There won't be any macroeconomic data releases in the remainder of the day and the risk perception is likely to continue to impact gold's market valuation.
Technical levels to watch for
The pair could face the first technical support at $1284 (20-DMA) ahead of $1277 (May 6 low) and $1268 (200-DMA). On the upside, resistances are located at $1290 (50-DMA), $1300 (psychological level/100-DMA) and $1309 (Apr. 11 high).
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.