Gold stages modest rebound to $1480 area
- US Dollar Index breaks above 97.50 after GDP data.
- Wall Street looks to open in positive territory.
- Coming up: UoM Consumer Confidence Index and PCE Price Index data from US.
The XAU/USD pair erased its daily losses in the last hour and turned positive on the day near $1480. However, the broad-based USD strength in the early American trading hours suggests that the pair could struggle to continue to push higher. As of writing, the pair was up 0.08% on the day at $1480.20.
USD's performance likely to keep pair's upside limited
Earlier in the day, the data published by the US Bureau of Economic Analysis revealed that the economy expanded by 2.1% on a yearly basis in the third quarter (final estimate) and helped the greenback gather strength against other major currencies. As of writing, the US Dollar Index was at its highest level in 10 days near 97.60, adding 0.2% on a daily basis.
In the meantime, the S&P 500 futures are up 0.2% on the day minutes ahead of the opening bell, pointing out to an upbeat market sentiment alongside the 10-year US Treasury bond yield, which was last seen adding more than 1% on the day.
Later in the session, the Personal Consumption Expenditures (PCE) Price Index and the University of Michigan's Consumer Sentiment Survey from the US will be looked upon for fresh impetus. Moreover, the capital flows into London fix ahead of the Christmas break could also ramp up the market volatility.
Technical levels to watch for