Gold slumps below $1,480 as risk appetite continues to dominate the market

  • 10-year United States (US) Treasury bond yield is up nearly 5%.
  • Wall Street's main indexes all gains around 1.5%.
  • US Dollar Index struggles to recover its losses despite upbeat data.

The bearish pressure surrounding the XAU/USD pair on Friday intensified in the last hour as markets continue to price a possible trade deal between the United States (US) and China. As of writing, the pair was trading at its lowest level in ten days near $1,474, erasing nearly $20 on the day.

Risk perception continues to drive the XAU/USD pair

US President Donald Trump in the last hour explained that a trade deal with China wouldn't have to be approved by the parliament and said that he would simply need to sign it when the deal if fully negotiated to hint that sides are close to reaching an agreement. 

Reflecting the strong risk appetite, the 10-year US Treasury bond yield is up nearly 5% on a daily basis. More importantly, the 3-month T-bond and the 10-year T-bond yield curve uni-inverted for the first time since July. Additionally, Wall Street's main indexes are all up more than 1.5%.

Meanwhile, heightened hopes of the United Kingdom and the European Union reaching a Brexit deal also allowed investors to stay away from safe-haven assets.

On the other hand, the University of Michigan's Consumer Sentiment Index rose to 96 in October to beat the market expectation of 92 but failed to help the US Dollar Index rebound from multi-week lows. At the moment, the index is down 0.35% on the day at 98.35.

Technical levels to watch for


Today last price 1475.36
Today Daily Change -18.54
Today Daily Change % -1.24
Today daily open 1493.9
Daily SMA20 1500.91
Daily SMA50 1505.72
Daily SMA100 1442.49
Daily SMA200 1369.59
Previous Daily High 1516.85
Previous Daily Low 1491.48
Previous Weekly High 1519.04
Previous Weekly Low 1455.5
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1501.17
Daily Fibonacci 61.8% 1507.16
Daily Pivot Point S1 1484.64
Daily Pivot Point S2 1475.38
Daily Pivot Point S3 1459.28
Daily Pivot Point R1 1510.01
Daily Pivot Point R2 1526.11
Daily Pivot Point R3 1535.37



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bullish case underpinned by weekend news

The EUR/USD pair has rallied Friday to close with gains for a third consecutive week at 1.1169. There was no particular catalyst for EUR gains. ECB scheduled to meet this week, although no fireworks expected this time.


GBP/USD: Uncertainty or relief? Action granted anyway

Hopes that the UK will avoid a hard-Brexit kept the Pound rallying against all of its major rivals by the end of last week, with GBP/USD finishing it a handful of pips below the critical 1.3000 level.


USD/JPY: Corrective slide to continue on sentiment

The USD/JPY pair closed the week at around 108.40, down Friday for a third consecutive day as the American currency remained under selling pressure. USD/JPY at risk of falling further only if it breaks below 108.00.


Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more