Gold: Probing 50-hour MA amid treasury yield curve steepening

Gold is mildly bid at press time near the 50-hour moving average hurdle.
The American Dollar is finding little love despite the treasury yield curve steepening, a sign of fading recession fears.

Omkar Godbole FXStreet Contributor

Gold is looking to move back above the 50-hour moving average, currently at $1,282 amid the yield curve steepening and a decline in the US dollar.

The spread between the yields on the US 10-year treasury note and the two-year Treasury note rose to 24 basis points earlier today, the highest level since Nov. 29, and is currently seen at 23 basis points.

Put simply, the yield curve is now the steepest since Nov. 29, a sign of fading US recession fears. Even so, gold, a safe haven asset, is pushing against the 50-hour MA hurdle, possibly due to weakness in the greenback.

The Dollar Index (DXY), which tracks the value of the greenback against major currencies, is currently trading at a five-day low of 97.980, representing a 0.10 percent drop on the day.

Both the DXY and gold ended Monday with losses, which is somewhat surprising, as the official data had shown US consumer spending increased by the most in more than 9-1/2 years in March, the official data showed. The 10-year yield almost five basis points to 2.542 percent.

While the Dollar's decline goes unexplained, the drop in the yellow metal was likely associated with the five basis point rise in the 10-year treasury yield to 2.54 percent.

Gold Technical Levels

1. R3 1293.25
2. R2 1290.05
3. R1 1284.58
PP 1281.38
1. S1 1275.91
2. S2 1272.71
3. S3 1267.24

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD stays below 1.1800 as markets await Fed speeches

EUR/USD remains trapped in a tight range below 1.1800 in the second half of the day on Tuesday. The pair struggles amid a modest US Dollar strength and an improvement in risk sentiment, even as US tariff uncertainty lingers. The focus now remains on comments from Federal Reserve officials.

GBP/USD stays defensive below 1.3500 as USD firms up

GBP/USD stays on the back foot below 1.3500 in the European trading hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US weekly ADP Employment Change and Consumer Confidence data due later in the day, along with speeches from Federal Reserve officials.

Gold retreats below $5,200 on renewed USD strength

Gold stages a deep correction following Monday's rally and trades below $5,200. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar gathers strength and weighs on XAU/USD ahead of Fed policymakers' speeches.

Crypto Today: Bitcoin, Ethereum, XRP come under renewed pressure amid ETF outflows, tariff uncertainty

Bitcoin, Ethereum and Ripple are trading under increasing selling pressure at the time of writing on Tuesday, as market participants navigate renewed tariff uncertainty. The Crypto King holds above $63,000, down 2% intraday from its $64,656 open.

AI-scare trade and tariff uncertainty takes hold

It was quite a day, with AI-disruption fears and tariff uncertainty triggering a risk-off session. By now, it's nearly impossible to have missed the Supreme Court's 6-3 decision that struck down US President Donald Trump's reciprocal tariffs last Friday.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.