Gold rebounds toward $1480 after disappointing US data
- Manufacturing activity in Philadelphia region stagnates in December
- 10-year US Treasury bond yield erases large part of daily gains.
- US Dollar Index struggles to stay afloat in positive territory.
The XAU/USD pair retreated to the lower limit of its weekly range earlier in the day but gained traction in the last hour as the greenback weakened following the disappointing data from the US. As of writing, the pair was trading at $1476.50, adding 0.1% on a daily basis.
Gold takes advantage of souring market sentiment
The business activity in Philadelphia's manufacturing sector stayed virtually unchanged in December with the headline Diffusion Index falling to 0.3 from 10.4 in November, the Philadelphia Fed's Manufacturing Survey showed on Thursday to revive concerns over a slowdown in the US' manufacturing sector.
With the initial reaction, the 10-year US Treasury bond yield erased a large portion of its daily gains to reveal the negative impact of the disappointing data on the risk sentiment. Nevertheless, Wall Street's main indexes started the day slightly higher to suggest that investors might be overlooking the data.
Additionally, the US Dollar Index, which was inching close to the 97.50 mark, lost its traction and turned negative on the day below the 97.40 to help the pair cling to its recovery gains.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
