- US stocks post modest gains on Wednesday, Nasdaq approaches record highs.
- 10-year US T-bond yield extends decline, slumps to multi-year lows below 2%.
- US Dollar Index stays in green despite mixed PMI data.
The troy ounce of the precious metal, which capitalized on the sour market sentiment and the falling US Treasury bond yields to climb to $1436, lost its traction in the second half of the day on Wednesday and was last seen posting small daily gains near $1420.
Following Monday’s sharp recovery on the back of renewed trade optimism, the 10-year US T-bond yield, a good gauge of the market’s risk perception, lost nearly 3% on Tuesday and slumped below the critical 2%. In the absence of fresh fundamental drivers, the slide continued on Wednesday and the yield on the 10-year reference touched its lowest level since 2016.
However, the market sentiment slightly improved in the second half with Wall Street starting the day in the positive territory and helped the T-bond yields limit their losses. As of writing, the Nasdaq Composite was within a touching distance of its record high, adding 0.55% on the day.
On the other hand, the US Dollar Index seems to be clinging to Monday’s gains as it continues to fluctuate above mid-96s. Today’s data from the U.S. showed that the business activity in the service sector expanded at a stronger pace in June than it did in May with the Markit Services PMI rising to 51.5 from 50.9.
Although the ISM’s Non-Manufacturing PMI in the same period came in a 55.9 to miss the market expectation of 55.1, the US Dollar Index inched higher and was last seen adding 0.07% on the day at 96.80.
With the U.S. markets staying closed amid the July 4th holiday on Thursday, the pair’s action could stay relatively shallow ahead of Friday’s critical NFP employment data from the U.S.
Technical levels to watch for
Share
