Gold prices traded near $1,915 per troy ounce during the Asian session on Monday, extending last week's gains. The recent drop in the US Treasury bond yields (US) helped push the yellow metal to recover. Additionally, moderate US economic data released last week along with mixed statements from major central bank officials at the Jackson Hole Symposium, underpinned Gold prices.
With that said, U.S. Durable Goods Orders in July fell 5.2% from the market consensus of 4%, ranging from 4.4% in June. However, Initial Jobless Claims showed favorable employment conditions, raising concerns about the US inflation scenario. For the week ending Aug. 18, the index fell to 230K from 240K previously, which is expected to remain steady.
With that said, U.S. Durable Goods Orders in July fell 5.2% from the market consensus of 4%, ranging from 4.4% in June. However, Initial Jobless Claims showed favorable employment conditions, raising concerns about the US inflation scenario. For the week ending Aug. 18, the index fell to 230K from 240K previously, which is expected to remain steady.
Comment:
Gold prices (XAU/USD) remain tough after pushing back from the downside with the first extreme weekly close in 5 years. The Yellow Metals' latest inaction could be related to market anxiety over this week's top US jobs and danger threat. In doing so, XAU/USD failed to cheer the latest drop in US Treasury yields and the US Dollar, as well as China-related optimism in Asia.
Comment:
Powell: Will cautiously decide whether to raise rates again, if appropriate, prepare to raise rates further, will apply restrictive policies until inflation continues to slow, 2% remains is and will continue to be our inflation target.
- Mester: Currently, it is expected to raise rates again this year, but not necessarily in September, once rates stop, they will keep rates unchanged for a period of time. In the new SEP, views may change.
- Harker : Recalling that further rate hikes are not necessary at this point; may need to raise interest rates if inflation stops falling; Inflation must be reduced to 2% and a rate cut is not expected until next year at the earliest.
- Mester: Currently, it is expected to raise rates again this year, but not necessarily in September, once rates stop, they will keep rates unchanged for a period of time. In the new SEP, views may change.
- Harker : Recalling that further rate hikes are not necessary at this point; may need to raise interest rates if inflation stops falling; Inflation must be reduced to 2% and a rate cut is not expected until next year at the earliest.
Comment:
🔹Nearly 90% of debt cancellation benefits will go to borrowers earning less than $75,000, per the White House.
Technically, Gold looks like it is looking for a slight upside momentum before plummeting towards the $1,880 target again.