free counter
Business

Gold Price Forecast: XAU/USD drops to 1-1/2 week low, below $1,770 before FOMC minutes

  • Gold turns lower for the 3rd straight day and drops to over a one-week low on Wednesday.
  • Hawkish Fed expectations, rising US bond yields underpin the USD and exert some pressure.
  • The risk-off mood does not lend support to the safe-haven XAU/USD before FOMC minutes.

Gold attracts fresh selling close to the $1,782 region on Wednesday and turns lower for the 3rd straight day. The intraday selling bias remains unabated through the first UNITED STATES session and drags the XAU/USD to a one-and-half-week low, round the $1,765-$1,764 area within the last hour.

The US dollar ticks higher, back nearer to the monthly top touched the prior day, which actually is an integral factor denting demand for the dollar-denominated gold. Despite signs of easing US inflation, investors seem convinced that the Fed would adhere to its policy tightening path. Wednesday’s mostly upbeat US Retail Sales data reaffirms market bets and continues to do something as a tailwind for the buck.

Hawkish Fed expectations, meanwhile, trigger a brand new leg up in america Treasury bond yields. This offers additional support to the greenback and additional plays a part in driving flows from the non-yielding yellow metal. Having said that, growing recession fears, combined with the risk-off impulse, could extend some support to the safe-haven gold and help limit any more losses, at the very least for the moment.

Worries in regards to a global economic depression temper investors’ appetite for perceived riskier assets, that is evident from the generally weaker tone round the equity markets. This may restrain bearish traders to put aggressive bets prior to the FOMC meeting minutes, scheduled for release later through the US session. Market players can look for clues concerning the chance for a 75 bps rate hike in September.

The Fed’s policy outlook would play an integral role in influencing the near-term USD price dynamics and offer a brand new directional impetus to gold. From the technical perspective, the recent repeated failures to get acceptance, or build on the momentum beyond the $1,800 mark supports prospects for an additional near-term depreciating move. Hence, any attempted recovery could be regarded as a selling opportunity.

Technical levels to view

Home elevators these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled with this page are for informational purposes only and really should not at all run into as a recommendation to get or sell in these assets. You need to do your personal thorough research prior to making any investment decisions. FXStreet will not at all guarantee that information is clear of mistakes, errors, or material misstatements. In addition, it will not guarantee that information is of a timely nature. Buying Open Markets involves a lot of risk, like the lack of all or perhaps a part of your investment, in addition to emotional distress. All risks, losses and costs connected with investing, including total lack of principal, are your responsibility. The views and opinions expressed in this post are those of the authors and don’t necessarily reflect the state policy or position of FXStreet nor its advertisers. The writer will never be held accountable for information that’s found at the finish of links posted with this page.

Or even otherwise explicitly mentioned in your body of this article, during writing, the writer does not have any position in virtually any stock mentioned in this post and no method of trading with any business mentioned. The writer have not received compensation for writing this short article, apart from from FXStreet.

FXStreet and the writer usually do not provide personalized recommendations. The writer makes no representations regarding the accuracy, completeness, or suitability of the information. FXStreet and the writer will never be responsible for any errors, omissions or any losses, injuries or damages due to this information and its own display or use. Errors and omissions excepted.

The writer and FXStreet aren’t registered investment advisors and nothing in this post will be investment advice.

Read More

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker