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

XAU/USD

Overview
Today last price 1475.36
Today Daily Change -18.54
Today Daily Change % -1.24
Today daily open 1493.9
 
Trends
Daily SMA20 1500.91
Daily SMA50 1505.72
Daily SMA100 1442.49
Daily SMA200 1369.59
 
Levels
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

 

 

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