GOLD Price Stable Despite US Data Impact on Yields

The price of gold has remained relatively stable following its recent multi-month high, showing only mild fluctuations. This has been attributed to the continued impact of United States data, which has been weighing heavily on US Treasury bond yields and allowing the price of gold to remain relatively stable. This has also been due to threats to the US dollar's reserve currency status, as well as downbeat yields which have prompted investors to favor gold over other options.

Despite a recent rise to the highest levels seen since March 2022, the precious metal's previous increase may be linked to the weakening of the US dollar amid downbeat US data and a decrease in hawkish bets on the Federal Reserve's next move. The continued recession has also contributed to the recent recovery in the price of gold, which has been buoyed by mixed signals and clues from the market.

Overall, the price of gold has risen due to softer US Treasury yields and a rebound in the US dollar, which has prompted investors to favor gold over other options. Key negative factors for bond coupons and the greenback, which have led to an increase in the price of gold, include the employment numbers and the latest activity data. These factors, along with the potential for the US central bank to pause its rate hike trajectory in May, have led to a nearly 57% chance that the US dollar will weaken further, making gold an attractive option for investors.

Despite some mild losses and fluctuations in recent days, multiple catalysts suggest that the price of gold may continue to rise in the future.

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