- 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD dips below 0.6600 following RBA’s decision
The Australian Dollar registered losses of around 0.42% against the US Dollar on Tuesday, following the RBA's monetary policy decision to keep rates unchanged. However, it was perceived as a dovish decision. As Wednesday's Asian session began, the AUD/USD trades near 0.6591.
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
Gold wanes as US Dollar soars, unfazed by lower US yields
Gold price slipped during the North American session, dropping around 0.4% amid a strong US Dollar and falling US Treasury bond yields. A scarce economic docket in the United States would keep investors focused on Federal Reserve officials during the week after last Friday’s US employment report.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
FTX has filed a consensus-based plan for its reorganization, coming almost two years after the now defunct FTX filed for Chapter 11 Bankruptcy Protection in the District of Delaware.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.