Oct 5, 2022
VOT Research Desk
Key News – Insights and Analysis
Gold has gained over $100/oz over the past week as a result of a weaker US dollar and lower expectations for US interest rates during the process
The belief that the Fed may have to reduce the size and speed of their rate hikes as liquidity and growth concerns haunt the market has been fueled by some weaker-than-anticipated US data, such as the ISM services report from last week and the JOLTs release from yesterday.
The interest-rate-sensitive 2-year UST is now offered with a yield of 4.14 percent, up about 13 basis points over the last two sessions but down from a multi-year peak of 4.36 percent. US Treasury yields have backed up over the past week.
Non-interest-bearing gold suffers as a result of US interest rates rising. The precious metal adheres to two levels of the Fibonacci retracement looking on the weekly gold chart.$1,617/oz is the 50% Fib retracement level.
The 38.2% Fib retracement at $1,726/oz held the recent sell-off and prompted a sharp rebound. held the test on Tuesday. In the coming days, it is likely that these two levels will remain active. Forecasters anticipate a slower rate of expansion in comparison to last month for the US non-manufacturing ISM release, which is scheduled for later today at 15:30 BST.
On Thursday, the US economic calendar is very light. On Friday, the monthly US jobs report (NFP) will be released at 13:30 BST. The Federal Reserve would welcome a slowdown in non-farm payrolls this month because the US government is attempting to moderate the employment market without leading to a significant increase in the unemployment rate.
Which stands at 3.7% at the moment. According to data from retail traders, 73.94 percent are net-long, with a ratio of 2.84 to 1. The number of net-long traders is 6.91 percent lower than yesterday and 16.68 percent lower than last week. On the other hand, the number of net-short traders is 2.10 percent higher than yesterday and 33.13 percent higher than last week.
