Gold hits fresh two-week lows under $1,500/oz

After a pause, Gold resumed the decline, falling again below $1,500/oz. Price bottomed at $1,497 the fresh two-week low. It bounced back to the upside and as of writing is hovering around $1,500 down for the day but off lows. On the flip side, under the daily, the next support emerges at $1,492. 

Negative momentum remains as markets stay positive 

XAU/USD holds a bearish short-term bias amid an improvement in risk appetite. Equity prices in Wall Street are higher while US bonds slide. The 10-year yield rose to 1.63%, the highest level since August 23. Some expectations about trade talks between the US and China contribute to improved market sentiment. Also, Friday’s announcement in China of a cut in the reserve requirement rate helped. 

The Swiss Franc, the Yen, bonds and Gold, traditionally safe-haven assets are all lower today. The US Dollar is mostly weaker despite rising US yields. 

The decline of the Dollar failed to offer support to gold prices. The ounce so far managed to hold on top of $1,500 but the negative tone is likely to remain in place as long as price stays below the $1,510 area. If it rises on top, it could extend toward the next resistance seen at $1,525. 

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