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  • US Dollar Index pushes higher despite mixed data.
  • 10-year US T-bond yield adds more than 1% on Friday.
  • Wall Street stays in the positive territory.

After losing a total of $15 in the last two days, the troy ounce of precious metal continued to weaken on Friday. As of writing, the XAU/USD pair was trading at its lowest level since late January near $1303, erasing nearly $10, or 0.7%, on a daily basis.

Similar to what we have seen on Thursday and Wednesday, a strong upsurge witnessed in the U.S. Treasury bond yields weighed on safe-havens and made it difficult for gold to find demand. At the moment, the 10-year reference is at its highest level in more than a month at 2.74% and is adding 1.02% on the day. Additionally, major equity indexes in the U.S. continue to float in the positive territory despite pulling back from session highs, reaffirming the risk-on mood.

Just recently, White House advisor Kudlow said that ‘tremendous progress’ was made on trade talks with China and added that President Trump and his counterpart Xi could sing a deal at Mar-a-lago  to provide an added boost to the sentiment.

Meanwhile, supported by bond yields, the greenback largely ignored today’s data and gathered strength to keep the bearish pressure intact. The U.S. Bureau of Economic Analysis today reported that the core PCE price index stayed unchanged at 1.9% on a yearly basis in December to match experts’ forecasts. On the other hand, the Manufacturing PMI published by the ISM and the IHS Markit both fell short of the market expectations.  

Key technical levels


       Daily SMA20:  1319.67
       Daily SMA50:  1300.1
       Daily SMA100:  1264.15
       Daily SMA200:  1235.92
       Previous Daily High:  1327.1
       Previous Daily Low:  1312.9
       Previous Weekly High:  1346.85
       Previous Weekly Low:  1320.72
       Previous Monthly High:  1346.85
       Previous Monthly Low:  1300.1
       Daily Fibonacci 38.2%:  1318.32
       Daily Fibonacci 61.8%:  1321.68
       Daily Pivot Point S1:  1308.3
       Daily Pivot Point S2:  1303.5
       Daily Pivot Point S3:  1294.1
       Daily Pivot Point R1:  1322.5
       Daily Pivot Point R2:  1331.9
       Daily Pivot Point R3:  1336.7