Gold finds resistance near $1320, erases daily gains ahead of Wall Street opening bell
- Wall Street looks to open in the negative territory.
- 10-year US T-bond yield extends losses.
- US Dollar Index consolidates Tuesday's gains.
The precious metal took advantage of the risk-off mood and gained value in dollar terms with the XAU/USD pair advancing to a daily high of $1319.10. However, the pair struggled to preserve its momentum ahead of the NA session and turned flat on the day near $1317.
In the absence of significant macroeconomic data releases, investors stay focused on falling global bond yields and their potential implications on the markets. Following yesterday's modest rebound, the 10-year US T-bond yield extended its slide today and touched its lowest level in nearly 16 months to confirm the sour market sentiment.
Later in the day, participants will be paying close attention to Wall Street's performance. If stock markets in the U.S. turn south today, the precious metal could continue to find demand as a safe-haven.
Meanwhile, the US Dollar Index is struggling to find direction despite the bond yields' high volatility on Wednesday and stays close to yesterday's closing level around 96.80. The only data releases from the U.S. today revealed that the trade deficit in the U.S. came in at $51.5 billion in January to better the market expectation of $57 billion but was largely ignored by the markets.
Technical levels
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.
