Fundermental Analysis: XAU/USD accelerates above $1770, turns positive for the week. Gold prices are up by more than 1% on Friday, boosted by lower US yields and a weaker greenback. XAU/USD trades at $1779, the highest level in a week.
University of Michigan’s Consumer Confidence report showed a sharp, unexpected decline to 70.2 in the main index, the lowest level since 2011. The numbers added fuel to the decline of the greenback across the board. The DXY is falling 0.50%, having the worst day in weeks. US yields tumbled after the latest economic numbers. The 10-year yield dropped to 1.30%, the lowest since Monday.
The combination of a weaker dollar and the rally in Treasuries pressured gold prices further to the upside. XAU/USD erased weekly losses and is in positive territory after a reversal of a $100 from the Monday flash crash low.
University of Michigan’s Consumer Confidence report showed a sharp, unexpected decline to 70.2 in the main index, the lowest level since 2011. The numbers added fuel to the decline of the greenback across the board. The DXY is falling 0.50%, having the worst day in weeks. US yields tumbled after the latest economic numbers. The 10-year yield dropped to 1.30%, the lowest since Monday.
The combination of a weaker dollar and the rally in Treasuries pressured gold prices further to the upside. XAU/USD erased weekly losses and is in positive territory after a reversal of a $100 from the Monday flash crash low.