XAU/USD: Gold Prices Hold Gains Above $2,380 as Stocks Snap Record-Setting Rally

Dow Jones couldn’t sustain its rise above 40,000 for first time ever. All three US indexes drifted lower to close in red.

• Gold prices XAUUSD remained well-bid early Friday, carrying over the gains from the previous day with just a slight tick lower. The yellow metal was floating near the $2,385 level in the first deals today as markets were assessing latest news reports and the overall risk sentiment. Price did retreat a bit from Thursday’s weekly high of $2,397 per ounce. But yesterday’s session wasn’t too good for other risk assets, too.
• Stocks across the board slid with investors running toward the safety of the US dollar for no apparent reason other than paring back risk and maybe profit taking (if you were lucky.) Also, bonds may be to blame for the fall with the yield on the 10-year closing at 4.376%, breaking a three-day losing streak. The 10-year yield helps gauge consumer demand because it sets the mortgage and credit card interest rates.
• In that context, investors pulled back from risk assets and the three major US stock averages staged a U-turn. Early in the session, the Dow Jones Industrial Average crossed 40,000 for the first time. The moment faded quickly and the 30-stock benchmark closed below the huge milestone. The S&P 500 and the Nasdaq Composite also peaked at fresh intraday record highs before clocking out for the day in the red.