Gold advances beyond $1,470 as US T-bond yields extend slide
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- 10-year US Treasury bond yield erases nearly 2% on Tuesday.
- US President Trump threatens to raise tariffs if there is no deal with China.
- US Dollar Index stays below 98 for second straight day.
The XAU/USD pair capitalized on the sour market sentiment in the second half of the day on Tuesday and rose above the $1,470 handle. As of writing, the pair was trading at $1,473.70, adding nearly $3, or 0.2%, on a daily basis.
Earlier in the American session, Bloomberg reported that the US side was softening its stance on the tariff rollback and sides were looking to use the near-deal from May as the benchmark for tariff reduction. Although these comments helped the market sentiment improve slightly, US President Trump reiterated that he will raise tariffs if they failed to reach an agreement on trade with China to help safe-haven assets find demand.
Reflecting the dismal mood, the 10-year US Treasury bond yield is losing nearly 2% on the day and the Dow Jones Industrial Average is down 0.4%.
USD waits for FOMC meeting minutes
Meanwhile, after closing the first day of the week in the negative territory below the 98 handle on Monday, the US Dollar Index is moving sideways on Tuesday, allowing the risk perception to continue to drive the pair's action. The only data from the US revealed that Building Permits and Housing Starts both rose more than expected in October but was largely ignored by investors.
On Wednesday, the Federal Open Market Committee (FOMC) will be publishing the minutes of its October meeting.
Technical levels to watch for
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