Gold struggles to recover above $1280 despite stocks selloff
- Greenback stays relatively calm on Monday.
- 10-year US T-bond yield moves sideways.
- Wall Street starts the day in the negative territory.
The troy ounce of the precious metal lost nearly $10 last week pressured by the broad-based USD strength and struggled to stage a meaningful recovery today. As of writing, the XAU/USD pair was down 0.09% on the day at $1276.60.
Although the market sentiment today seems to stay on the negative side with global equity indexes turning south, the fact that the 10-year US Treasury Bond yield stays flat on the day suggests that investors are not yet fleeing to safer assets.
In the early trade, the Dow Jones Industrial Average is losing 0.65% on the day and the Nasdaq Composite is erasing 1.8% with the Technology Index suffering heavy losses amid the ongoing conflict with Huawei.
Meanwhile, following last week's decisive rally, the US Dollar Index is moving sideways near the 98 handle despite the disappointing Chicago Fed National Activity Index and is keeping the pair in the red. At the moment, the DXY is virtually unchanged on the day at 97.95. Later in the American session, FOMC Chair Powell and Vice Chair Clarida will be delivering speeches.
Technical levels to consider
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.
