- US Dollar Index rises for the 5th straight day.
- Mixed market sentiment helps gold keep its losses limited.
The troy ounce of the precious metal lost around $5 on Monday and stayed under pressure during the first half of the day on Tuesday with the XAU/USD pair touching its lowest level since early March at $1285. However, the pair staged a modest rebound following the initial drop and was last seen trading near $1290, adding nearly $2 on a daily basis.
The bearish pressure surrounding the major European currencies gathered strength on Tuesday amid disappointing macroeconomic data releases and Brexit uncertainty to help the greenback continue to find demand. The US Dollar Index, which closed the last four trading days in the positive territory, pushed higher earlier today and rose to its best level in more than three weeks at 97.46. Ahead of the durable goods orders and the ISM NY Business Condition Index, the DXY is trading near 97.40.
On the other hand, following yesterday’s sharp upsurge, the 10-year T-bond yield reversed its course and was down nearly 1% at the time of press, helping gold show resilience as a traditional safe-haven. Nevertheless, the S&P 500 Futures is pointing out to a flat start in Wall Street, which could dampen safe-haven flows and make it difficult for the pair to extend its recovery.
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