Gold value restrain on US treasuries peaks. The following macro factors for the gold are provided by the FOMC minutes & Core PCE.
Gold trend is limited to debt ceiling outcome
The short-term US Treasury bill rates have reached levels that have not occurred in ages. Due to concerns that the continuing debt discussions may be a bit late, and cause the US to enter a technical default. As traders want a greater return on their investment throughout the negotiating time frame.
The yield of the 1-month US T Bill is currently trading at about 5.6 percent. Although both parties claim that the discussions are fruitful and the president pointed out stated a default was “out of the table,” The meetings with President Joe Biden and Kevin McCarthy had so far yielded much of note. Recent statements made by the Treasury Secretary that a debt default was highly probable if a deal wasn’t reached by the middle of June
US Fed meeting minutes and Q2 GDP is critical
There are a few significant US economic information dumps and events coming up during the week. Beginning later today, that gold investors should keep in mind even if gold is now struggling with high US bond rates. Thursday will witness the unveiling of the latest US Q2 GDP report. while this evening’s most recent FOMC Minutes should provide The market with additional specifics as to what was addressed at the most recent meeting. Prior to the issuance from the final Michigan Consumer Sentiment survey for May on Friday at 12:20 GMT. The Fed’s favored inflation indicator, Core PCE, will be issued.
Economic Activity Schedule
Technical Perspective
Gold is still close to a current multi-week bottom of $1,952/oz.. And if US bond rates continue to rise.They may challenge this price point once again. Since the multi-decade top of $2,081/oz. on May 4, the drop in price has been relentless. With no evidence of a resilient return. The hurdles that lies between the 20- and 50-day moving averages, located at $1,993/oz. & $2,001/oz.. It must be decisively overcome for gold to go further.
According to statistics from retail traders, 65.63 percent of investors are overall long, with a longer-to-short ratio of 1.91 to 1. The total number of traders who are net-long is off 1.65% from yesterday and down 0.33% from the previous week. While the quantity of traders who are net-short is up 3.87% from Tuesday
