Tuesday, June 6, 2023
HomeUncategorizedGold Price Forecast: Gold/USD appears vulnerable near three-week lows amid rising USD...

Gold Price Forecast: Gold/USD appears vulnerable near three-week lows amid rising USD and bond yields

  • Gold fell for a fifth straight day to a multi-week low.
  • Tough Fed expectations, U.S. bond yields soared, and continued buying pressure on the dollar.
  • Recession fears, safe-haven impulses failed to impress the bulls or provide any support for the metal.

Gold extends this week’s bearish trend for the fifth day in a row, It fell to a three-week low on Friday. XAU/USD remained subdued during the North American morning session, currently trading around $1,750, down nearly 0.40% on the day.

Fears of a global economic downturn sparked a fresh wave of global safe-haven trades on the last day of the week. This was evident in the generally weaker tone in equities, which proved to be a key factor in providing some support for the safe-haven precious metal. That being said, the continuation of the recent dollar rally has limited dollar-denominated gold’s intraday recovery attempts.

In fact, the U.S. dollar index (DXY), which tracks the greenback’s performance against a basket of currencies, surged to a one-month high on Fed hawkish expectations. Minutes of the Federal Open Market Committee meeting released on Wednesday showed policymakers remained committed to raising interest rates to curb inflation. In addition, recent comments from several Fed officials suggest the Fed will stick to its policy tightening path.

In addition, the upcoming better-than-expected US macroeconomic data once again confirmed the market, which in turn led to a further rise in US Treasury yields . In fact, the yield on the benchmark 10-year U.S. government bond rose back to near the 3.0% threshold. This, in turn, continued to support the dollar and further drove outflows from the unyielding yellow metal in favor of bearish traders.

Even from a technical standpoint, the recent repeated failures near the $1,800 mark and subsequent break below the previous month’s low of $1,754 The nearby area also adds credibility to the negative outlook. This, in turn, suggests that the path of least resistance for gold is to the downside. Still, the metal is on track to post deep weekly losses and break a four-week winning streak to hit a more than one-month high.

Technical level to watch


The information on these pages contains forward-looking statements that involve risks and uncertainties. The markets and instruments described on this page are for informational purposes only and should not be taken as a recommendation to buy or sell these assets in any way. You should conduct your own thorough research before making any investment decision. FXStreet does not warrant in any way that this information is free of errors, errors or material misstatements. It also does not guarantee that the information is timely. Investing in public markets involves a number of risks, including loss of all or part of your investment, and emotional distress. All risks, losses and costs associated with investing, including the entire loss of principal, are borne by you. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of FXStreet or its advertisers. The author is not responsible for the information at the end of links published on this page.

Unless otherwise expressly mentioned in the text of the article, at the time of writing, the author is in any stock mentioned No positions are in this article and have no business relationship with any of the companies mentioned. Other than from FXStreet, the author did not receive any compensation for writing this article.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness or suitability of this information. FXStreet and the author shall not be liable for any errors, omissions or any loss, injury or damage arising out of this information and its display or use. Errors and omissions excluded.

The author and FXStreet are not registered investment advisors and nothing in this article is investment advice.



Please enter your comment!
Please enter your name here


Featured NEWS