Gold rebounds from weekly lows on USD weakness, trades around $1,490
- Disappointing consumer sentiment data from the US weighed on the USD.
- 10-year US Treasury bond yield remains in the negative territory.
- US Dollar Index posts modest losses below 97.70.
The XAU/USD pair came under strong selling pressure during the European trading hours and fell to a fresh weekly low of $1,483.70. With the Greenback losing its strength during the American session, however, the pair pulled away from its lows and was last seen trading at $1,490, losing 0.16% on a daily basis.
Risk-on flows weighed on gold on Tuesday
Earlier in the day, reports of the UK opposition Labour party backing the call for a snap election eased concerns over a no-deal Brexit and made it difficult for the safe-haven assets to find demand. Additionally, the South China Morning Post (SCMP), a Chinese news outlet, reported that US President Trump and his Chinese counterpart Xi was expected to sign an interim trade deal at the APEC summit in Chine on November 17th.
The 10-year US Treasury bond yield, which gained more than 3% on Monday, lost more than 1% earlier in the day but retraced a large portion of its daily drop on the back of recovering market sentiment. At the moment, the 10-year US T-bond yield is down 0.35% on the day.
On the other hand, the US Dollar Index, which advanced to a fresh 12-day high of 97.93 on Tuesday, reversed its direction after the Conference Board's Consumer Confidence Index came in at 125.9 in October to miss the market expectation of 128 and helped the pair pull away from lows. At the moment, the index is down 0.06% on the day at 97.68.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
