Gold rebounds to $1,465 area as Trump downplays China trade deal


  • US Pres. Trump says he hasn't yet agreed to roll back tariffs.
  • 10-year US Treasury bond yield erases daily gains on souring sentiment.
  • US Dollar Index clings to gains above 98.30.

After slumping to its lowest level since early August at $1,456.33 in the early trading hours of the American session, the XAU/USD pair staged a recovery in the last hour with the precious metal finding demand amid souring market sentiment. As of writing, the pair was down 0.15% on a daily basis at $1,465.50. Despite this rebound, the pair remains on track to post its largest weekly loss of the year, erasing nearly $50.

US-China trade headlines continue to dominate markets

Reports suggesting that the United States (US) and China will be mutually rolling back tariffs as part of the phase-one of the trade deal provided a boost to the market sentiment and caused the safe-haven gold to lose interest. However, US President Donald Trump on Friday told reporters that he hasn't yet agreed to the reduction of tariffs to pour cold water on the optimism.

Reflecting the negative change in the risk sentiment, the 10-year US Treasury bond yield, which was up more than 1% on the day for the majority of the day, dropped into the negative territory in the last hour and Wall Street's main indexes pushed lower.

On the other hand, the US Dollar Index preserved its bullish momentum in the session and made it difficult for the pair to extend its recovery. At the moment, the index is up 0.23% on the day at 98.36. The data from the US today revealed that consumer confidence is expected to improve slightly in November with the University of Michigan's (UoM) Consumer Sentiment Index edging higher to 95.7 from 95.5 in October.

Technical levels to consider

XAU/USD

Overview
Today last price 1466.82
Today Daily Change -1.17
Today Daily Change % -0.08
Today daily open 1467.99
 
Trends
Daily SMA20 1493.18
Daily SMA50 1500.76
Daily SMA100 1476.26
Daily SMA200 1389.78
 
Levels
Previous Daily High 1492.2
Previous Daily Low 1461.14
Previous Weekly High 1515.38
Previous Weekly Low 1481.1
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1473
Daily Fibonacci 61.8% 1480.33
Daily Pivot Point S1 1455.35
Daily Pivot Point S2 1442.71
Daily Pivot Point S3 1424.28
Daily Pivot Point R1 1486.41
Daily Pivot Point R2 1504.84
Daily Pivot Point R3 1517.48

 

 

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