- 10-year US Treasury bond yield erased 1% on Friday.
- US Dollar Index stays in the positive territory near 97.80.
- Coming up: Markit Services and Manufacturing PMI data from US.
The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.
Risk sentiment drives gold's action
The World Health Organisation's (WHO) said coronavirus had not yet become a global health emergency and noted that it was too early to draw conclusions on its severity to help market sentiment improve.
However, the 10-year US Treasury bond yield, which spent a large portion of the day in the positive territory, lost its traction in the last hour and was last down 1% to suggest that investors are not yet eager to move away from safe-haven assets. With risk-off flows picking up steam in the early trading hours of the American session, the pair staged a rebound and was last seen trading at $1561, losing nearly $2 on the day.
In the meantime, the greenback is staying relatively strong with major European currencies struggling to find demand on Friday and making it difficult for the pair to make a decisive rally. Ahead of the preliminary Manufacturing and Services PMI data from the US, the US Dollar Index is up 0.15% on the day at 97.82.
Technical levels to watch for
|Today last price||1554.53|
|Today Daily Change||-4.25|
|Today Daily Change %||-0.27|
|Today daily open||1558.78|
|Previous Daily High||1559.75|
|Previous Daily Low||1550.4|
|Previous Weekly High||1562|
|Previous Weekly Low||1536.35|
|Previous Monthly High||1525.1|
|Previous Monthly Low||1454.05|
|Daily Fibonacci 38.2%||1556.18|
|Daily Fibonacci 61.8%||1553.97|
|Daily Pivot Point S1||1552.87|
|Daily Pivot Point S2||1546.96|
|Daily Pivot Point S3||1543.52|
|Daily Pivot Point R1||1562.22|
|Daily Pivot Point R2||1565.66|
|Daily Pivot Point R3||1571.57|
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