XAUUSD - Strategies for Unemployment Claims
All in all, gold prices were trading at their best levels since June 6th. The price of yellow metal has increased by more than 8% since the beginning of the year 2023 to date. In the same performance, silver prices, the sister commodity to gold, rose above the $25 resistance level. Thus, the price of the white metal has risen by about 4.4% so far this year.
For their part, market analysts say that the Fed's approach to the end of raising US interest rates and easing inflation were the main factors for the rise in gold and silver prices. The possibility of the Fed hitting the brakes and possibly cutting interest rates also helped support the metals market.
On the economic front, US retail sales rose 0.2% in June, down from 0.5% in May, and below the consensus estimate of 0.5%. Last month, industrial production and manufacturing production fell by 0.5% and 0.3%, respectively. Capacity utilization slowed to 78.9%. Next week, the FOMC will hold its July two-day policy meeting. It is widely expected that officials will raise interest rates by a quarter point.
Another factor affecting the gold market was the returns of the US Treasury bond market, which varied in performance, as the yield on ten-year bonds fell 1.7 basis points to 3.772%. The two-month note rose 2.5 basis points to 5.398%, while the two-year note fell 0.008 basis points to 4.331%. As it is well known, the gold market is sensitive to interest rate movements because it can affect the opportunity cost of holding unprofitable bullion.
For their part, market analysts say that the Fed's approach to the end of raising US interest rates and easing inflation were the main factors for the rise in gold and silver prices. The possibility of the Fed hitting the brakes and possibly cutting interest rates also helped support the metals market.
On the economic front, US retail sales rose 0.2% in June, down from 0.5% in May, and below the consensus estimate of 0.5%. Last month, industrial production and manufacturing production fell by 0.5% and 0.3%, respectively. Capacity utilization slowed to 78.9%. Next week, the FOMC will hold its July two-day policy meeting. It is widely expected that officials will raise interest rates by a quarter point.
Another factor affecting the gold market was the returns of the US Treasury bond market, which varied in performance, as the yield on ten-year bonds fell 1.7 basis points to 3.772%. The two-month note rose 2.5 basis points to 5.398%, while the two-year note fell 0.008 basis points to 4.331%. As it is well known, the gold market is sensitive to interest rate movements because it can affect the opportunity cost of holding unprofitable bullion.
Comment:
HIT TP2 +120Pips ✅
✅ TP1: 1970
✅ TP2: 1966
🛑 SL: 1988