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  • Risk-off mood boosts the demand for gold in the NA session.
  • US 10-year T-bond yields drop more than 2%.
  • US Dollar Index slumps to mid-96s.

After erasing the majority of its daily gains and retreating toward the $1230 mark, the XAU/USD pair gained traction in the last hours and rose to its highest level since July 17 at $1243.25. As of writing, the pair was up nearly $8 on a daily basis at $1240.

The pair’s recent upsurge seems to be the product of a shift in the market sentiment. With Wall Street starting the day on the back foot and continuing to slide, the demand for traditional safe-havens such as the precious metal increased in the session. At the moment, the Dow Jones Industrial Average was down 1.25% while the S&P 500 was losing 1.7%. Additionally, the risk-off mood also weighed on the Treasury Bond yields and forced the greenback to weaken against its rivals.

The US Dollar Index, which rose to its highest level in more than two months at 96.86 earlier in the day, erased all of its daily gains and was last seen down 0.15% at 96.45. Meanwhile, today’s data from the United States showed that the first estimate of the Q3 real GDP growth fell to 3.5% from 4.2% recorded in the second quarter. With this latest rally, the pair now remains on track to end its fourth straight week higher.

Technical levels to consider

On the upside, resistances could be seen at $1248 (Jul. 12 high), $1255 (Jun. 29 high) and $1265 (Jul. 9 high). Supports, on the other hand, align at $1230 (daily low), $1222 (Oct. 24 low) and $1215 (Oct. 12 low).