Gold Price Forecast: XAU/USD attracts some sellers below $2,000 on the renewed USD demand
- Gold price loses ground near $1,990 on the firmer US Dollar, higher Treasury yields.
- University of Michigan Consumer Sentiment Index rose to 61.3 in November versus the 60.4 initial reading.
- The FOMC Minutes showed all participants agreed that policy decisions would continue to be based on the totality of incoming information.
- Gold traders will monitor the US S&P Global PMI on Friday.
Gold price (XAU/USD) loses its recovering momentum after retreating from $2,006 during the early Asian session on Thursday. Yellow metal attracted some sellers after the upbeat US consumer sentiment report saw the US Treasury yield and the US Dollar recovering. Markets remain subdued ahead of the Thanksgiving Day holiday in the United States on Thursday. Gold price currently trades around $1,990, up 0.02% on the day.
Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, hovers around 103.88. The US Treasury yields edge higher, with the 10-year yields climbing 4.40%. This, in turn, weighs on the yellow metal as US yields are the opportunity cost of holding non-yielding metals.
The US University of Michigan Consumer Sentiment Index rose to 61.3 in November from an initial reading of 60.4, its fourth consecutive monthly fall. Furthermore, the UoM 1-year inflation expectations rose to 4.5% from the preliminary 4.4%. The 5–10y inflation expectations were steady at 3.2%.
Durable Goods Orders dropped 5.4% MoM in October versus a 4.6% rise prior. In the labor market, the Jobless Claims for the week ending November 17 unexpectedly fell to 209,000, the biggest fall since June while Continuing Claims declined to 1.84M versus 1.862M prior.
On Tuesday, the November Federal Open Market Committee (FOMC) Meeting Minutes showed all participants agreed to proceed carefully and policy decisions at every meeting would continue to be based on the totality of incoming information and economic outlook as well as the balance of risks.
Gold traders will take more cues from the US S&P Global PMI data on Friday for fresh impetus. The Manufacturing PMI is expected to rise to 49.8 while Services PMI is estimated to grow to 50.4. These figures could give a clear direction to the gold price.
Reprinted from FXStreet_id,the copyright all reserved by the original author.
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
Hot
No comment on record. Start new comment.