Gold prices advance on falling US Treasury yields and US dollar weakness. US equities rise, despite cooling manufacturing data, illustrating Fed actions are being felt. At the time of writing, gold is trading at $1770.5.<\/p>\n\n\n\n
Fed policymakers pushed back against deacceleration of interest rate hikes, according to the market\u2019s reaction. If buyers reclaim $1800, the bias shift to neutral-upwards; otherwise, a leg down to $1730 is viable.<\/p>\n\n\n\n
Gold price climbs for the fourth consecutive day, extending its ongoing recovery. The US dollar remains heavy, undermined by falling US Treasury yields, as investors assessed that the Federal Reserve might hike rates, but not as aggressive as expected. At the time of writing, XAUUSD is trading at $1771.15, up 0.32%.<\/p>\n\n\n\n
US ISM held stubbornly to expansionary territory, price index down from 78.5 to 60. European and US equities do fluctuate, reflecting a fragile sentiment. Meanwhile, tensions between China and the US, with US House Speaker Pelosi visiting Taiwan, increased military activity on China\u2019s side. That dragged European equities lower, while traders are optimistic that the Fed\u2019s \u201cdovish\u201d pivot, as perceived by the markets, was reinforced by weaker US ISM PMI readings.<\/p>\n\n\n\n
The Institute for Supply Management reported that July\u2019s Manufacturing PMI clung to expansionary territory, beating the estimations. Nevertheless, it trailed June\u2019s reading, while some components, like new orders, dropped while the price index plunged, showing signs that higher interest rates are beginning to be felt.<\/p>\n\n\n\n
Minnesota Fed President Neil Kashkari commented that he was surprised by the markets\u2019 reaction that the Fed would soon begin to \u201cback off\u201d and said that 50 bps rate hikes at upcoming meetings would be reasonable. He added that higher core inflation readings would push him for another 75 bps increase.<\/p>\n\n\n\n
The Gold Index soared to fresh four-week highs around $1775.39, bolstered by broad US dollar weakness. The US Dollar Index (DXY), a gauge of the US dollar\u2019s value versus six rival currencies, falls towards 105.427, down 0.38%, undermined by US Treasuries tumbling across the yield curve.<\/p>\n\n\n\n
Real yields, as depicted by the US 10-year Treasury Inflation-Protected Securities (TIPS) bond yield, sit at 0.109%, down from YTD highs of 0.893%, a headwind for higher gold prices. The US calendar will unveil the JOLTs Job Openings, and Fed speaking with Chicago Fed President Charles Evans will cross the wires.<\/p>\n\n\n\n
Technically, gold is still neutral biased, despite rising above the $1750 figure, as buyers set their eyes to May\u2019s 16 low shifted resistance at $1787.03. If gold buyers reclaim the previously mentioned, that will open the door for a test of the 100-day EMA at $1795.16, followed by the $1800 mark. A breach of the said level would move the bias to neutral upwards. Otherwise, correction towards the 20-day EMA at $1730.84 will be potential.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold prices advance on falling US Treasury yields and US dollar weakness. US equities rise, despite cooling manufacturing data, illustrating Fed actions are being felt. At the time of writing, gold is trading at $1770.5. Fed policymakers pushed back against deacceleration of interest rate hikes, according to the market\u2019s reaction. If buyers reclaim $1800, the …<\/p>\n","protected":false},"author":13,"featured_media":61161,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,36],"tags":[9879,6874,8676,6871],"class_list":["post-69355","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-market-updates","tag-bias","tag-gold","tag-ism-manufacturing-pmi","tag-usd"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/69355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=69355"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/69355\/revisions"}],"predecessor-version":[{"id":69361,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/69355\/revisions\/69361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/61161"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=69355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=69355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=69355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}