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Gold clings to small daily gains above $1,530 ahead of US data

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Gold clings to small daily gains above $1,530 ahead of US data

  • 10-year US Treasury bond yield edges lower on Tuesday.
  • US Dollar Index pushes carries winning streak into fifth straight day.
  • Coming up: Markit and ISM Manufacturing PMI reports from the US.

Despite the broad-based USD strength, the XAU/USD pair is posting modest daily gains on Tuesday as the risk-averse atmosphere helps the precious metal find demand. As of writing, the pair was up $2 on the day at $1,532.

US-China trade tensions re-escalate

On Sunday, 15% additional US tariffs on Chinese imports went into effect and China announced that they filed a complaint against that action with the World Trade Organization. However, with the US markets enjoying the long Labor Day weekend, the market reaction remained relatively muted.

As the bond markets reopened today, the 10-year US Treasury bond yield lost more than 1% to reveal that this latest development had a modestly negative impact on the market sentiment. Reflecting the risk-off atmosphere, major European equity indexes are posting losses on Tuesday and the S&P 500 Futures is erasing 0.75% to suggest that Wall Street is likely to start the day deep in the negative territory.

On the other hand, the heavy selling pressure surrounding major European currencies continue to provide a boost to the Greenback and makes it difficult for the pair to gain traction. At the moment, the US Dollar Index is staying at its highest level in more than two years at 98.30. Later in the session, the IHS Markit and the ISM Manufacturing PMI reports from the US will be looked upon for fresh impetus. Investors will also be paying close attention to Wall Street’s main indexes’ performances.

Technical levels to watch for

XAU/USD

OVERVIEW
Today last price 1530.48
Today Daily Change 0.68
Today Daily Change % 0.04
Today daily open 1529.8
TRENDS
Daily SMA20 1512.82
Daily SMA50 1456.37
Daily SMA100 1379.99
Daily SMA200 1333.84
LEVELS
Previous Daily High 1533.64
Previous Daily Low 1519.45
Previous Weekly High 1554.63
Previous Weekly Low 1517.38
Previous Monthly High 1554.63
Previous Monthly Low 1400.9
Daily Fibonacci 38.2% 1524.87
Daily Fibonacci 61.8% 1528.22
Daily Pivot Point S1 1521.62
Daily Pivot Point S2 1513.44
Daily Pivot Point S3 1507.44
Daily Pivot Point R1 1535.81
Daily Pivot Point R2 1541.81
Daily Pivot Point R3 1549.99
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