Gold trades below $1,580 as US bond yields recover

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Gold trades below $1,580 as US bond yields recover

  • Ten-year US Treasuries are gaining nearly 2% on Monday.
  • The US dollar index is recovering towards the 98 area after Friday's decline.
  • Next release: Markit and ISM manufacturing PMI data for January.

The XAU/USD pair lost momentum on Monday as the precious metal appears to be struggling to find demand amid improving market sentiment. At the time of writing, the pair is trading at $1,578.20, losing 0.75%, or $11.50, on a daily basis.

Although there were no new positive developments around the coronavirus outbreak, China's willingness to support the economy to offset the negative impact helped market sentiment improve slightly on Monday. Reflecting the shift in sentiment, the 10-year US Treasury yield adds nearly 2% and major European stock indices are looking to end the day with modest gains.

Focus on PMI data

Meanwhile, the dollar is benefiting from the broad selling pressure surrounding the major European currencies and allowing the downward pressure on the pair to remain intact.

Investors will be paying close attention to Wall Street's performance on Monday to see if risk appetite remains strong during the US session.

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