Gold draws buyers and rises beyond the weekly low.
The gold price (XAUUSD) continues to rise throughout the Asian session. On Wednesday, building on its overnight surge from the $1,954–1,953 range. Because of lower US Treasury bond yields. The non-yielding yellow metal appears to have temporarily stopped its recent retracement decline from the $2,000 psychological barrier. Or a five-month high hit last Friday.
The safe-haven XAU appears to be further benefited by fears of a recession and geopolitical dangers.
In addition, the possibility of an impending recession. Fueled by In addition to the Middle East turmoil, a flurry of poor economic data out of Europe on Tuesday turns out to be another factor driving refuge flows towards the gold market. Due to worries that the Israel-Hamas conflict may spread to other Middle Eastern countries and have an effect. On the global economy, the price of precious metal has increased by more than 8% during the last two weeks.
Nevertheless, the likelihood of additional policy tightening by the Federal Reserve (Fed) limits. The upside for the price of gold and discourages bulls from making large wagers. Additionally, traders appear hesitant and would rather hold off until. After Fed Chair Jerome Powell’s remarks later in the US session. Meanwhile, attention will continue to be focused on the US Core PCE Price Index announcement. The Fed’s favored inflation indicator is anticipated on Friday.
Daily Market Movers: The price of gold finds it difficult to build on its slight intraday advances.
Geopolitical threats and declining US Treasury bond yields. Put bulls of the US dollar (USD) on the defensive and draw some purchasers to the gold price.
In order to provide humanitarian relief to the beleaguered Gaza Strip. World leaders pressed for either a halt or ceasefire between Israel and Hamas.
The benchmark 10-year US Treasury yield crosses the significant 5%. Threshold level for the first time since 2007, pulling away from a 16-year peak.
The unexpected decline in business activity in the Euro Zone has rekindled fears of a recession. Which is good news for the safe-haven XAUUSD pair.
The USAA still robust economy is indicated by the manufacturing sector’s recovery from a five-month downturn. And the moderate acceleration of services activity.
Although the markets are pricing in the likelihood of one more 25 basis point lift-off by year’s end, the Fed is projected to preserve the status quo in November.
Investors are now watching Fed Chair Jerome Powell’s speech for clues regarding the trajectory of future rate hikes, which should give the metal a new lease on life.
The European Central Bank (ECB) rate decision and the Advance US Q3 GDP data will also be of interest on Thursday, with the US PCE price index coming up on Friday.
