- Kansas Fed President George prefers to keep rates unchanged.
- 10-year US Treasury bond yield gains more than 2%.
- US Dollar Index clings to small daily gains near 98.30.
The XAU/USD pair came under renewed bearish pressure in the last hour and broke below the critical $1,500 as the rising US Treasury bond yields made it difficult for the safe-haven gold to find demand. After dropping to a session low of $1,492.58, the pair recovered slightly and was last seen trading near $1,495, losing 0.5% on the day.
Hawkish Fed commentary lifts T-bond yields
In an interview with Bloomberg today, Kansas Fed President Esther George argued that it was not the time for accommodation citing strong labour market and added that she would prefer to leave the rates unchanged. "Businesses are still reporting issues finding workers, we are seeing higher wages," George added.
These comments seem to have provided a boost to the US Treasury bond yields. The 10-year reference, which spent a large portion of the day moving sideways, is now up 2.83% on the day at 1.622%.
George's hawkish comments also allowed the US Dollar Index (DXY) to stay in the positive territory despite the sharp rise witnessed in the GBP/USD pair. As of writing, the DXY was up 0.05% on the day at 98.30.
Later in the day, the IHS Markit's preliminary Manufacturing and Services PMI reports from the US will be looked upon for fresh impetus. Additionally, markets will be keeping close eye on Wall Street's performance to get a sense of the market sentiment. At the moment, the S&P 500 Futures is up 0.15% on the day, pointing out to a positive opening in the major US equity indexes.
Technical levels to watch for
|Today last price||1494.08|
|Today Daily Change||-8.67|
|Today Daily Change %||-0.58|
|Today daily open||1502.75|
|Previous Daily High||1507.95|
|Previous Daily Low||1496.68|
|Previous Weekly High||1534.4|
|Previous Weekly Low||1481|
|Previous Monthly High||1452.72|
|Previous Monthly Low||1382.02|
|Daily Fibonacci 38.2%||1500.98|
|Daily Fibonacci 61.8%||1503.64|
|Daily Pivot Point S1||1496.97|
|Daily Pivot Point S2||1491.18|
|Daily Pivot Point S3||1485.69|
|Daily Pivot Point R1||1508.24|
|Daily Pivot Point R2||1513.73|
|Daily Pivot Point R3||1519.52|
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.