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Gold advances to 6-month highs as stocks continue to suffer losses

  • Risk-off mood boosts demand for safe-havens.
  • US Dollar Index drops below 96.50.
  • 10-year T-bond yield falls more than 2%.

The XAU/USD pair continued to edge higher in the NA session and touched its highest level in more than 6 months at $1279. As of writing, the troy ounce of the precious metal was trading at $1278.50, adding $11.5, or 0.9%, on the day.

The combination of a dismal market mood and the broad-based selling pressure surrounding the buck seems to be fueling the pair's rise on Thursday. After gaining nearly 5% yesterday, major equity indexes in the U.S. started the day under pressure and pushed lower in the session to show that the risk-aversion became the main theme of the markets today. At the moment, the Dow Jones Industrial Average and the S&P 500 are both down more than 2% while the Nasdaq Composite is erasing 3.2%.

Confirming the risk perception, yields of the safe-haven Treasury bonds recorded sharp losses and forced the greenback to retrace yesterday's rally. As the 10-year bond yield is losing more than 2% on the day and approaching its lowest level since April, the US Dollar Index is down 0.55% on the day at 96.48. Moreover, today's disappointing consumer confidence report published by The Conference Board made it difficult for the buck to find demand.

  • US: Conference Board's Consumer Confidence Index declines to 128.1 in December.

Technical levels

XAU/USD

Overview:
    Today Last Price: 1278.3
    Today Daily change: 1.2e+3 pips
    Today Daily change %: 0.930%
    Today Daily Open: 1266.52
Trends:
    Previous Daily SMA20: 1245.67
    Previous Daily SMA50: 1231.19
    Previous Daily SMA100: 1217.96
    Previous Daily SMA200: 1229.7
Levels:
    Previous Daily High: 1279.1
    Previous Daily Low: 1263.5
    Previous Weekly High: 1266.8
    Previous Weekly Low: 1235.85
    Previous Monthly High: 1237.4
    Previous Monthly Low: 1196.4
    Previous Daily Fibonacci 38.2%: 1269.46
    Previous Daily Fibonacci 61.8%: 1273.14
    Previous Daily Pivot Point S1: 1260.31
    Previous Daily Pivot Point S2: 1254.1
    Previous Daily Pivot Point S3: 1244.71
    Previous Daily Pivot Point R1: 1275.91
    Previous Daily Pivot Point R2: 1285.3
    Previous Daily Pivot Point R3: 1291.51

 

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