- Gold lost traction after rising to $ 1,800 on Friday.
- The yield on 10-year US Treasuries increased by almost 2%.
- The latest US PMI data underscored strong price pressures.
After climbing to a daily high of $ 1,795 earlier in the day, the pair XAU / USD made a sharp U-turn and was last seen losing 0.3% on the day at $ 1,778.
US Treasury Yields Turn North Following PMI Data
A decisive rally seen in US Treasury yields appears to be weighing on gold during US trading hours. Currently, the yield on the benchmark 10-year US Treasury is up nearly 2% to 1,567%.
Data released by IHS Markit revealed on Friday that economic activity in the US private sector expanded at a record pace in April with the Composite rising to 62.2 from 59.7 in March. However, the underlying details of the release revealed that producers were passing input price increases to customers at an increasing rate, rekindling concerns about inflation.
Other data from the US showed that new home sales in March rose 20.7%, compared to analysts’ expectation of a 12.8% increase.
Meanwhile, the US Dollar Index remains deep in negative territory around 91.00 after this data, helping XAU / USD limit its losses for the time being.
Technical levels
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