- 10-year T-bond yield fails to stay in the positive territory.
- US Dollar Index clings to daily gains.
- Wall Street trades mixed following a positive start.
After dropping to its lowest level since early March at $1280 and coming in within a touching distance of it 2019 low of $1276, the XAU/USD pair staged a decisive rebound and was last seen at $1288, still down nearly $2 on the day.
Earlier in the session, the 10-year T-bond yield rose into the positive territory and Wall Street started the day higher to point to a strong risk appetite, which weighed on the safe-haven precious metal and dragged the pair lower. Additionally, the US Dollar Index extended its daily rebound and kept the bearish pressure intact. At the moment, the US Dollar Index is up 0.23% on a daily basis at 97.31.
However, with the 10-year T-bond yield changing its direction in the last hour amid mixed headlines surrounding the U.S: – China trade conflict, the pair pulled away from its lows. Although President Trump reiterated that trade talks with China were moving along nicely, he added that it was a complex deal covering issues surrounding IP and technology and they would not do it if it were not “great.”
Technical levels to consider
Below $1280 (Mar. 7 low), the pair could extend its drop to 2019 low of $1276 ahead of $1266 (Dec. 27, 2018 low). On the upside, resistances could be seen at $1293 (daily high), $1300 (psychological level) and $1307 (50-DMA).
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