VOT Research Desk
The price of gold (XAUUSD) is still hovering around $1,765, as the most recent recovery failed to entice buyers in the early hours of Friday.
The cause might be explained by recent hawkish remarks made by Federal Reserve officials and challenges to mood from China. However, a lack of significant facts or events and the willingness of global policymakers to contain recession-related problems tempt the XAUUSD buyers.
On Thursday, James Bullard of the St. Louis Federal Reserve and Neel Kashkari of the Minneapolis Federal Reserve contested the market’s pre-established opinions, which were largely in favor of the 50 basis point increases.
The robust Retail Sales and Producer Price Index (PPI) figures may be the cause. The US 10-year Treasury yields rebounded from their six-week low after the hawkish Fed speech and marked the widest gap with their two-year counterpart since the 1980s, indicating the recession’s difficulties.
Nevertheless, the recent decrease in Fed bets supporting a 50 basis point rate hike in December as well as the rise in betting supporting a 75 basis point move weigh on the price of gold.
Additionally, geopolitical issues surrounding Russia and China’s failure to satisfy traders despite expectations for faster growth in the coming years give gold sellers hope.
However, a light schedule and upbeat remarks from China’s and Japan’s authorities recently challenge the XAUUSD bears, making it unlikely.
