Gold falls during the Asian session, retreating further from Friday’s post-NFP swing high.
The gold price (XAUUSD) begins the new week on a negative note. Extending Friday’s retracement decline from levels above the $2,000 psychological threshold. Which was reached in response to dismal US jobs data. Following a minor increase in US Treasury bond yields. The US Dollar (USD) draws some buying and proves to be a good investment. The precious metal is being weighed down by a key factor. Aside from that, the safe-haven commodity falls below the $1,985 barrier during the Asian session. Due to a generally optimistic tone in the equity markets.
Bets that the Fed would stop raising rates and global concerns should limit the XAUUSD’s losses.
However, rising consensus that the Federal Reserve (Fed) is nearing the end of its policy tightening campaign should limit additional USD gains. And continue to support the non-yielding Gold price. Aside from that, the potential of additional escalation in the Israel-Hamas conflict should help limit the XAUUSD’s fall. As a result, aggressive bearish traders should exercise caution before preparing for any major corrective slide from the YTD peak. Which was reached on October 27 in the $2,009 range.
Daily Market Movers:Gold price is dragged down by rising US bond rates and increased USD demand.
The US Dollar is making a minor rebound from a six-week low reached on Friday. With support coming from a positive increase in US Treasury bond yields. Which is seen impacting on the gold price.
Moreover Firming predictions that the Federal Reserve would not raise rates again. Supported by softer US macro data posted on Friday, should keep the Greenback from strengthening further.
The headline NFP revealed that the US economy added 150K jobs in October, versus 180K expected. While the prior month’s number was cut down to 297K from 336K originally reported.
ISM Non-Manufacturing PMI in the United States fell to a five-month low.
The ISM Non-Manufacturing PMI in the United States fell to a five-month low. level of 51.8 in October, up from 53.6 in September. Reinforcing expectations that the Fed will maintain the status quo at the December policy meeting.
Furthermore on the geopolitical front, Israel rebuffed rising calls for a truce in Gaza on Sunday. Saying that Israeli soldiers will step up operations against the Palestinian Islamist group Hamas.
According to Israel’s chief military spokesperson. The IDF bombed Hezbollah terrorist objectives in southern Lebanon in response to a missile attack on tanks that killed an Israeli citizen.
Hezbollah retaliated by firing rockets toward the northern Israeli town of Kiryat Shmona. Saying it would never allow attacks on civilians and that its response would be “firm and strong.”
Moreover the leader of Lebanon’s extremist group Hassan Nasrallah stated that his Iran-backed force was not afraid of US warships. And that all options for expanding the conflict into Lebanon were open.
