The US dollar gathered pace on Thursday, weighing on gold prices, with the bright metal failing to capitalize fragile market mood following a negative Wall Street opening. On Wednesday, softer-than-expected US inflation data lifted expectations that the Federal Reserve will be pausing its tightening cycle next meeting, putting the dollar under interim pressure.
At the time of writing, spot gold XAU/USD is trading at the $2,015/oz area, 0.7% below its opening price and posting the second daily decline in a row.
Cautious market mood boosted the greenback amid banking sectors jitters and US debt ceiling concerns. Wall Street main indexes traded mixed, with the S&P 500 and de Dow Jones down, while the Nasdaq remains slightly up on the session.
The dollar rallied versus most competitors despite the decline in US bond yields. The US 10-year Treasury note yields 3.382%, with the rate down for a second consecutive day amid higher bond demand.
Despite the risk-off mood and lower bond yields, the yellow metal continues to struggle finding buyers, with the price pulling back from record highs and approaching the $2,000 level.
From a technical perspective, XAU/USD short-term perspective has turned slightly bearish according to indicators on the daily chart, although the price is resisting above the 20-day SMA, which stands as immediate support at $2,007.
Loss of the moving average will expose the $2,000 psychological area, targeting the critical $1,975 region. On the other hand, recovery of the $2,050 zone would improve the short-term outlook, putting focus back on the record highs at the $2,070-75 zone.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Gold Prices Drop as U.S. Dollar Strengthens Amidst Cautious Market Sentiment
Published 05/11/2023, 01:42 PM
Updated 07/09/2023, 06:32 AM
Gold Prices Drop as U.S. Dollar Strengthens Amidst Cautious Market Sentiment
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Latest comments
Gold price will bearish or not ?
gold price down or up today?
up
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.