- Wall Street looks to open the day in the negative territory.
- US Dollar Index posts small gains on Monday following Friday’s rally.
- 10-year US Treasury bond yield struggles to continue to push higher.
The troy ounce of the precious metal lost more than $20 on Friday and closed the week below the critical $1400 mark. With the markets going into a consolidation phase in the absence of significant fundamental drivers and geopolitical developments, the XAU/USD pair staged a technical rebound and was last seen trading at $1406, adding 0.5% on the day.
The US Dollar Index, which took advantage of the upbeat nonfarm payrolls figures on Friday and rose to a two week high of 97.44, closed the week at 97.17 and is now looking to extend its gains as investors continue to price the falling odds of multiple Fed rate cuts in the remainder of the year. At the moment, the index is up 0.12% on the day at 97.30, making it tough for the pair to stretch higher.
On the other hand, Wall Street looks to open the day in the negative territory with the S&P 500 Futures posting modest losses and points out to negative market sentiment. Confirming the sour mood, the 10-year US Treasury bond yield is staying in the negative territory. If the risk perception doesn’t change in the second half of the day, gold is likely to hold on to its daily gains as a traditional safe-haven.
Technical levels to watch for
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