The US Dollar is correcting from six-month highs against its major peers, as the Bank of Japan’s (BoJ) steady policy provided a sense of calm, lifting the overall market mood. Investors’s sentiment was dented by the US Federal Reserve’s (Fed) hawkish stance, which suggested a ‘higher for longer’ interest rate view. The BoJ maintained its ultra-easy monetary policy, signaling it was in no rush to wind up its massive monetary stimulus.
Gold price is capitalizing on a broad US Dollar retreat, rebounding to a critical resistance. The further recovery, however, appears elusive amid a renewed uptick in the US Treasury bond yields. The benchmark 10-year US Treasury bond yield is flirting with fresh 16-year highs of 4.511%.