Gold rebounds above $1560 ahead of US PMI data


  • 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

XAU/USD

Overview
Today last price 1554.53
Today Daily Change -4.25
Today Daily Change % -0.27
Today daily open 1558.78
 
Trends
Daily SMA20 1544.99
Daily SMA50 1500.78
Daily SMA100 1497.64
Daily SMA200 1441.49
 
Levels
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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