XAU/USD advances to $2,070 as market sentiment improves – Crypto News – Crypto News
Connect with us
XAU/USD bulls reach a critical milestone on daily chart ahead of Jackson Hole XAU/USD bulls reach a critical milestone on daily chart ahead of Jackson Hole

others

XAU/USD advances to $2,070 as market sentiment improves – Crypto News

Published

2 years ago

on

Share:

  • Gold price demonstrates strength as US Dollar faces challenges on improved market sentiment.
  • The investor risk appetite improves as softer US data backs the Fed to be dovish in the upcoming policy meetings.
  • The downbeat US bond yields represent investors’ mood bias toward lowered Fed’s policy rates anytime soon.

Gold price trades higher near $2,070 per troy ounce during the Asian session on Friday, recovering the recent losses from the previous session. The improvement in the US Dollar (USD) faded the shine of the yellow metal.

However, the softer economic data from the United States (US) might have put a ceiling on the advance of the Greenback as it reinforces the market sentiment bias toward the dovish stance of the US Federal Reserve (Fed) in its monetary policy decisions in early 2024.

The latest figures reveal a surprise increase in US Initial Jobless Claims, reaching 218K for the week ending December 23, surpassing the market’s projection of 210K. Additionally, Pending Home Sales (MoM) for November turned stagnant at 0.0%, falling short of the anticipated 1.0% growth.

The subdued yields on US bond coupons reflect a sentiment anticipating lower Federal Reserve policy rates in the near future. This, in turn, is boosting investor risk appetite and contributing to the upward movement in Gold prices. The 2-year and 10-year yields on US Treasury notes are standing lower at 4.26% and 3.84%, respectively, by the press time.

The resurgence of major shipping firms in the Red Sea indicates a cautious step towards normalization, although apprehensions persist regarding the potential closure of the Gibraltar Strait by Iran. Traders are closely monitoring the intricate and ever-changing geopolitical landscape in the Middle East. Any updates in this volatile scenario have the potential to sway market sentiments and impact the demand for safe-haven assets, such as Gold.

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending