Gold yesterday opened the weekly trading session with an upward trend from 1916 to 1930 when the USD experienced declines and corrections after the Bank of Japan's move caused the market to increase expectations for the future. The Yen negative interest rate period will soon end.
The US Dollar Index (DXY) fell to around 104.60, trying to offset losses thanks to positive developments in United States (US) bond yields. The US 10-year Treasury yield rose to 4.30% at the time of writing.
Strong economic data in August put pressure on gold prices. Although the labor market has shown weakness over the past few weeks, it recently experienced a pullback with two strong reports including the ISM Services PMI and Initial Jobless Claims, both all exceeded market expectations. As long as data continues to show a mixed outlook, market participants can expect prices to stabilize
The US Dollar Index (DXY) fell to around 104.60, trying to offset losses thanks to positive developments in United States (US) bond yields. The US 10-year Treasury yield rose to 4.30% at the time of writing.
Strong economic data in August put pressure on gold prices. Although the labor market has shown weakness over the past few weeks, it recently experienced a pullback with two strong reports including the ISM Services PMI and Initial Jobless Claims, both all exceeded market expectations. As long as data continues to show a mixed outlook, market participants can expect prices to stabilize
Comment:
Expectations were lifted by upbeat US macro data released last week, which showed the economy is resilient and will allow the Fed to maintain higher interest rates for longer. The hawkish outlook remains supportive of rising US Treasury yields and pushed the US Dollar (USD) to a six-month peak last week. However, the greenback saw some profit-taking on Monday and fell near multi-day lows on Tuesday, providing some support to Gold prices.
SL: 1931
TP1: 1920
TP2:1915