Gold finds support near $1320, remains in the negative territory
- US Dollar Index struggles to gain traction on Tuesday.
- Markets ignore mixed PPI data from the US.
- 10-year US T-bond yield retreats from highs.
The troy ounce of the precious metal continued to lose value on Tuesday following last week's impressive rally and the XAU/USD pair dropped to its lowest level in a week at $1319.95. With the risk appetite losing its strength in the second half of the day, the pair recovered from the daily lows and was last seen trading at $1325.50, down 0.17% on a daily basis.
The 10-year US Treasury bond yield, which plummeted to its lowest level since September of 2017 last week, rose more than 2% on Monday and pushed higher during the first half of the day to reflect a positive market sentiment that makes it difficult for traditional safe-havens such as gold find demand. In the early NA session, however, the 10-year T-bond yield pulled away from the 12-day high that it set at 2.178% earlier today and was up only 0.5% at the time of press.
Additionally, major equity indexes in the U.S. retraced a large portion of the positive opening gap to reaffirm the shift in the market mood.
On the other hand, following today's macroeconomic data releases from the U.S., which showed that the PPI and the core PPI rose 1.8% and 2.3% on a yearly basis, respectively, the US Dollar Index struggled to make a decisive move in either direction and was last seen posting small daily gains at 96.80.
Technical levels to watch for