Gold finds support below $1310, turns positive on the day near $1313

  • CPI in the U.S. stays unchanged in January.
  • 10-year T-bond yield climbs higher on trade optimism.
  • US Dollar Index rebounds to 97 area.

The XAU/USD pair came under a renewed selling pressure in the early NA session and fell below $1310 pressured by the broad-based USD strength and positive market sentiment. However, with the greenback struggling to preserve its bullish momentum in the last hour, the pair turned positive on the day and was last seen adding 0.2% on the day near $1313.

The monthly data published by the U.S. Bureau of Labor Statistics on Wednesday revealed that the inflation as measured by the Consumer Price Index stayed unchanged in January on a monthly basis and dragged the annual rate down to 1.6% from 1.9% in December. Further details of the publication showed that the core CPI rose 0.2% and 2.2% in the same period. Although the initial market reaction to the data was relatively muted, the greenback started to gather strength on the back of surging T-bond yields.

After White House Spokeswoman told Fox News that President Trump was weighing possibilities regarding the China trade deadline and added that she saw progress in talks, the 10-year T-bond yield gained traction and was last up adding more than 1% on the day. Supported by that development, the US Dollar Index continued to erase yesterday's losses and advanced above the 97 handle to weigh on the pair. Right now, the DXY is clinging to modest gains around 96.90.

Meanwhile, major equity indexes in the U.S. started the day in the positive territory to confirm the risk-on mood, which could make it difficult for the pair to push higher in the session.

Technical levels to consider

The pair could face the first technical support at $1307 (20-DMA) ahead of $1300 (psychological level) and $1297 (Jan. 28 low). On the upside, resistances are located at $1315 (Feb. 10/11 high), $1319 (Feb. 4 high) and $1326 (Jan. 31 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.

EUR/USD News

GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.

GBP/USD News

USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.

USD/JPY News

The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News

Majors

Cryptocurrencies

Signatures