- A goodish pickup in the US bond yields exerted some fresh pressure on Monday.
- Positive trade-related comments/a modest USD uptick added to the selling bias.
- The downside seemed cushioned as the focus remains on US-China trade talks.
Gold added to the previous session's losses and dropped to near one-week lows during the early Asian session on Tuesday, albeit managed to recover a bit thereafter.
The precious metal failed to capitalize on last week's solid rebound from two-month lows and came under some renewed selling pressure on the first day of a new trading week. A goodish pickup in the US Treasury bond yields provided a modest lift to the US Dollar, which eventually turned out to be one of the key factors exerting pressure on the dollar-denominated commodity - Gold.
Weighed down by trade optimism
The downtick seemed unaffected by a mixed trading sentiment across global equity markets, weighed down by reports that Chinese officials were increasingly reluctant to agree to a broad trade deal pursued by the US President Donald Trump. White House economic adviser Larry Kudlow helped ease some anxiety, which further undermined the precious metal's safe-haven demand and collaborated to the weaker tone.
Kudlow said that the United States was open to looking at China's proposals and added that the US and Chinese trade negotiators could make progress. This was followed by reports suggesting that China is ready to do a deal with the United States on parts of negotiations. Hence, the key focus will remain on the outcome from US-China trade negotiations in Washington starting this Thursday.
In the meantime, Tuesday's US economic docket, highlighting the release of Producer Price Index (PPI), will now be looked upon for some short-term impetus later during the early North-American session. This coupled with the broader market risk sentiment and the USD price dynamics might further assist investors to grab some meaningful trading opportunities.
Technical levels to watch
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
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.