Daily Digest Market Movers: Gold price bulls take a brief pause amid mixed fundamental cues
- The Institute for Supply Management reported that the US manufacturing sector expanded in March after 16 straight months of contraction, forcing investors to trim their bets for a June rate cut by the Federal Reserve.
- The shift in expectations lifts the yield on the rate-sensitive two-year and the benchmark 10-year US government bonds to a two-week peak, which underpins the US Dollar and exerts some pressure on the Gold price.
- A sharp rise in the US Treasury bond yields, along with the risk of a further escalation of geopolitical tensions in the Middle East, tempers investors' appetite for riskier assets and lends support to the safe-haven XAU/USD.
- Israeli air strikes destroyed the Iranian embassy's consular annex in Syria on Monday, killing seven members, including a top Revolutionary Guard commander, and fuelling fears of further violence between Israel and Iran's allies.
- Moreover, the US PCE Price Index released on Friday indicated a moderate rise in inflation during February and kept Fed rate cut hopes on the table, which should contribute to limiting the downside for the non-yielding metal.
- Tuesday's US economic docket features the release of JOLTS Job Openings and Factory Orders, which, along with speeches by a slew of influential FOMC members, should drive the USD demand and provide a fresh impetus.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
If you like, reward to support.
Hot
No comment on record. Start new comment.