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  • US Dollar Index clings to small daily gains near 97.80.
  • 10-year US T-bond yield drops to lowest level since Sep. 2017.
  • Wall Street set to open in the negative territory.

After moving sideways on Monday, the XAU/USD pair came under a modest bearish pressure during the Asian trading hours and fell to a daily low of $1282.50 before going into a consolidation phase. As of writing, the pair was down 0.1% on a daily basis a little below $1284.

The broad-based selling pressure surrounding the major European currencies amid political uncertainties seems to be helping the greenback find demand on Tuesday and keep the bearish pressure on the pair intact. The U.S. economic docket today will feature the CB Consumer Confidence Index and the S&P/Case-Shiller House Price Index. At the moment, the DXY is up 0.08% on the day at 97.80.

Despite the USD’s performance, however, the sour market sentiment helps the precious metal stay resilient.  Following the long weekend, the U.S. bond market opened today and the 10-year bond yield lost more than 1.5% to slump to its lowest level since September of 2017 below 2.3%. Additionally, the S&P 500 Futures is down 0.2% on the day, suggesting that Wall Street could open the day in the negative territory to reaffirm the risk-off atmosphere in the second half of the day.

Gold technical outlook