Gold turns flat above $1,490 as USD remains under pressure
- US Dollar Index dropped below 97.40 in the American session.
- Fed's Clarida says monetary policy is not on a preset course.
- Wall Street's main indexes stay in the negative territory.
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. However, despite the broad-based selling pressure surrounding the USD this week, the pair struggled to gain traction as the upbeat risk sentiment on hopes of a Brexit deal made it difficult for safe-havens to find demand. Although the proposed deal is subject to the UK parliament's vote on Saturday, investors seem reluctant to price the possibility of the UK crashing out of the EU.
US Dollar Index falls for the third straight week
On the other hand, disappointing macroeconomic data releases from the US earlier in the week and the strong performance of major European currencies, such as the GBP and the EUR, caused the Greenback to suffer losses against its rivals and helped the pair limit its losses.
As of writing, the US Dollar Index was at its lowest level in nearly two months at 97.35, erasing 1% since Monday.
While speaking at an event organized by the CFA Institute in Boston on Friday, Richard Clarida, the Federal Reserve Board of Governors Vice-Chair, refrained from delivering a hawkish message and repeated that the Fed's monetary policy was not on a preset course and said that the policy decisions will be made "meeting by meeting" to put additional weight on the USD's shoulders.
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.
