Gold slumps to fresh daily lows near $1470 on broad USD strength
- US Dollar Index rises toward 97.50 on Wednesday.
- Wall Street looks to open the day slightly higher.
- 10-year US Treasury bond yield pares early losses.
The XAU/USD pair spent the first two days of the week fluctuating in a tight range below the $1480 mark but came under modest selling pressure on Wednesday to drop to $1470. As of writing, the pair was down 0.25% on the day at $1472.35.
USD continues to find demand
The broad USD strength seems to be forcing the pair to remain under bearish pressure. After closing the day above the 97 mark on Monday, the US Dollar Index posted small gains on Tuesday and continued to push higher to touch its highest level in a week at 97.48.
Although there were no significant fundamental drivers that could directly impact the USD's performance, the selling pressure on the major European currencies, namely the GBP and the EUR, seems to be ramping up the demand for the greenback.
In the meantime, the 10-year US Treasury bond yield pared early losses and turned positive on the day to point out to a recovering market sentiment, which makes it difficult for the safe-haven gold to stay resilient against the USD.
Later in the session, Chicago Fed President Charles Evans will be delivering a speech. Additionally, investors will be paying close attention to Wall Street's performance. Ahead of the opening bell, the S&P 500 futures are up 0.12% on the day to suggest that major equity indexes in the US could open in the green.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
