Gold retreats as growth risks drive safe-haven bids to US dollar
Gold prices slipped to a one-week low due to rising bond yields and a stronger U.S. dollar, as investors sought a hedge against global economic growth concerns.
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Posted 9/5/2023, 6:42:00 PM
reuters.com
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The recent uptick in gold prices may face resistance at the $2000 milestone, while a dip below $1900 could lead to a decline towards the $1800 range, as gold's volatility is intertwined with the fluctuations of the US dollar and is influenced by interest rates.
Gold prices in Asia rose after the recent decline in bond markets, as lower yields boosted demand for the precious metal, while investors await more information on the US Federal Reserve's policy stance at the Jackson Hole symposium this week.
Gold and silver prices rise as the weaker U.S. dollar index and dip in U.S. Treasury yields attract futures traders and bargain hunters, while anxieties build over upcoming speeches from the Fed and ECB on future monetary policy direction and the potential shift in the Fed's inflation goal.
Gold price is aiming to sustain above $1,920.00 as pressure builds on the US Dollar and Treasury yields, with the upcoming labor market data playing a crucial role in guiding the Federal Reserve's policy action.
Gold and silver prices rise to three-week and four-week highs respectively, driven by weaker-than-expected U.S. economic data and a decline in the U.S. dollar index.
Gold prices could receive a boost from key technical indicators, U.S.-China tensions, and weaker economic data, despite some challenges, according to Arslan Butt, Lead Commodities and Indices Analyst at FX Leaders.
Gold prices rose slightly last week while silver remained mostly unchanged, but both metals are expected to potentially move together in an upward direction next week due to a dovish outlook on interest rates and potential repricing of the Federal Reserve's monetary policy.
The U.S. dollar declined due to weaknesses in economic growth, leading to a boost in the performance of gold and U.S. equities, while other global assets experienced mixed price movements throughout the week.
Gold prices decline slightly as the dollar remains strong, with investors awaiting further signals on the U.S. Federal Reserve's monetary policy after an expected interest rate pause this month.
Gold and silver prices are lower due to a strong U.S. dollar and rising U.S. Treasury yields, while trader and investor risk appetite is downbeat with downbeat economic data from China and Asian stock markets mostly lower.
The U.S. dollar's dominance in the gold market may be losing momentum, potentially leading to new all-time highs for gold as the dollar weakens, according to market strategist Carley Garner. She expects the U.S. dollar index to hold resistance below 105 points and eventually retest support at 99 points, which could be a game changer for gold, potentially pushing prices to $2,600 an ounce. Garner also highlights the resilience of gold and the potential for a selloff if the Federal Reserve shifts to a more neutral monetary policy stance. However, she is not as optimistic about silver, preferring to focus on gold.
Gold prices fell around 1% after Labor Day, with retail investors expecting further declines next week, while market analysts remain bearish, citing the strength of the U.S. dollar as a key factor influencing gold's performance.
Gold prices rose on Monday, reaching their highest level in nearly two weeks, as the dollar weakened ahead of the U.S. inflation data, which could impact the Federal Reserve's interest rate decision.
Hedge funds are reducing their bearish bets in gold, but bullish sentiment needs to improve for gold prices to break initial resistance above $1,980 an ounce.
Gold gained as the dollar weakened against the yuan due to positive China economic data, although the possibility of further U.S. interest rate hikes kept investors cautious.
The US Dollar underperformed against major currencies last week, crude oil continued to rally, and gold prices were cautiously higher, while upcoming events like central bank rate decisions and the Bank of England rate hike are expected to impact the market.
Gold prices are trading at session lows due to tighter labor market conditions and significant selling pressure, as weekly jobless claims fell by 20,000 to 201,000, surprising economists who were expecting an increase.