Gold prices is broken amid a rise in the US dollar.
The price of gold has stopped rising since October 17 and is now trading lower on Monday during the Asian session. At about $1,970 per troy ounce. Although gold has historically been a sought-after safe-haven asset because to geopolitical tensions between Israel and Hamas. The present risk-on attitude is putting pressure on the price of gold.
Improved US Treasury yields provide support for the greenback’s ascent.
US Dollar Index (DXY) is up, trading at roughly 106.30. The strong momentum in US Treasury yields supports the US dollar. As the 10-year US Treasury yield increased by 1.30% at the time of publication, to 4.98%.
Strong US economic data that was released the week prior may further help the greenback. Recent job statistics indicates that the economy is doing well. The number of Weekly Initial Jobless Claims has dropped to its lowest point since January, suggesting a strong and stable labor market. Existing home sales, on the other hand, are showing a divergent pattern, having dropped to the lowest level since 2010, indicating difficulties in the housing market.
Fed policymakers’ dovish comments undermined the dollar.
Raphael Bostic, the president of the Atlanta Fed, stated on Friday. That it is doubtful that the Federal Reserve will cut interest rates before the middle of 2019. The strong momentum in US Treasury yields supports the US dollar. As the 10-year US Treasury yield increased by 1.30% at the time of publication, to 4.98%.
Strong US economic data that was released the week prior may further help the greenback. Recent job statistics indicates that the economy is doing well. The number of Weekly Initial Jobless Claims has dropped to its lowest point since January. Suggesting a strong and stable labor market. Existing home sales, on the other hand, are showing a divergent pattern, having dropped to the lowest level since 2010. Indicating difficulties in the housing market.
Raphael Bostic, the president of the Atlanta Fed, stated on Friday. That it is doubtful that the Federal Reserve will cut interest rates before the middle of 2019. Key indicators possess the capacity to substantially influence market sentiment and offer valuable perspectives into the wider economic environment in the United States. Key indicators possess the capacity to substantially influence market sentiment and offer valuable perspectives into the wider economic environment in the United States.
