Gold slumps to $1,490 area on rallying US T-bond yields

  • Wall Street's main indexes push higher on Monday.
  • 10-year US Treasury bond yield gains more than 3%.
  • US Dollar Index moves sideways ahead of this week's key events.

The XAU/USD pair spent the Asian session moving sideways above the $1,500 handle but lost its traction during the American trading hours as the latest headlines surrounding the US-China trade dispute and Wall Street's strong performance at the opening made it difficult for safe-haven assets find demand. As of writing, the pair was down nearly 1% on the day at $1,490. 

Positive mood weighs on gold

After posting gains for the third straight week, the 10-year US Treasury bond yield rose sharply on Monday and was last seen adding more than 3% to confirm the upbeat market sentiment.

US President Donald Trump earlier in the day said that they were expecting to finalize phase one of the trade deal with China at the APEC summit in Chile. "We are looking to be ahead of schedule to sign phase one of the US-China trade deal," Trump added to boost the risk appetite.

On the other hand, the US Dollar Index has gone into a consolidation stage after closing the previous week higher and is likely to stay quiet until Wednesday's economic growth data and the Federal Reserve's monetary policy decisions. 

Previewing the event, "The recent easing of downside risks to the global growth outlook from US-China trade tensions and No Deal Brexit risk have also helped to lift US yields," said analysts at MUFG Bank. "The 10-year US Treasury bond yield has risen to just over 1.8% after hitting a low of 1.5% at the start of this month. US rate market participants still expect the Fed to follow through and cut rates by a further 25 basis points this week although it is now seen as more likely to be the last rate cut delivered this year.”

Technical levels to watch for


Today last price 1492.12
Today Daily Change -12.32
Today Daily Change % -0.82
Today daily open 1504.44
Daily SMA20 1493.4
Daily SMA50 1505
Daily SMA100 1462.78
Daily SMA200 1380.69
Previous Daily High 1517.92
Previous Daily Low 1500.74
Previous Weekly High 1517.92
Previous Weekly Low 1481.05
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1511.36
Daily Fibonacci 61.8% 1507.3
Daily Pivot Point S1 1497.48
Daily Pivot Point S2 1490.53
Daily Pivot Point S3 1480.32
Daily Pivot Point R1 1514.66
Daily Pivot Point R2 1524.87
Daily Pivot Point R3 1531.83



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

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 


EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 


The phantom of fear pierces crypto market foundations

Negative technical indicators are extremely volatile and are approaching a technical rebound. Ethereum has fundamentals in play versus Bitcoin which could be lethal. XRP is not immune to downfalls and adds to the dangerous game of critical supports.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY: Holding on to higher ground but lacking momentum

Positive developments between the US and China keep the mood up. Japanese data mixed, industrial figures continue disappointing. USD/JPY needs to advance beyond 109.72, December monthly high.