Gold prices are hovering near seven-month lows.
The gold price is continuing its downward trend that began on September 25, trading at $1,820 per troy ounce during the early Asian trading session on Wednesday.
The risk-off mentality puts pressure on non-yielding assets such as gold.
Gold prices are falling as a result of risk-off attitude and a stronger US dollar (USD).
Over the weekend, moderate Chinese growth statistics failed to provide any support for the precious metal. China’s NBS Manufacturing PMI increased to 50.2 in August, up from 49.7 in July, beating the 50.0 forecast.
Non-manufacturingThe PMI increased to 51.7 from 51.0 in the previous measurement, above the market estimate of 51.5. Furthermore, Caixin Manufacturing’s PMI fell to 50.6 in September from 51.0 in August, which was predicted to rise to 51.2.
Positive US job data increases US bond rates, supporting the greenback.
The US Dollar Index (DXY) hit an 11-month high in the previous session, fueled by strong US job statistics and higher US Treasury rates. At the time of writing, the spot is hovering around 107.10.
Job openings in the United States surpassed estimates, adding to an increase in US Treasury rates. On Tuesday, the 10-year US bond yield touched 4.81%, its highest level since 2007.
US JOLTS Job Openings increased to 9.61 million in August, up from 8.92 million in July, above market forecasts. Furthermore, there are some reservations about theThe US Federal Reserve’s (Fed) interest rate trajectory is adding to the Greenback’s favorable attitude.
If present economic circumstances hold, Cleveland Federal Reserve President Loretta Mester signaled a preference for an interest rate rise at the next meeting. In contrast, Atlanta Fed President Raphael Bostic expressed patience about the Fed’s policy outlook, adding that there is no urgency to raise or lower rates.
Market players are looking forward to the publication of US employment data, which includes the ADP report on Wednesday and the Nonfarm Payrolls report on Friday.
