Gold steadies near two-week high as Fed relief run
#World Cup Predictions: 100,000 USDT Daily #BTC Prophet: 20-Day 380 Million HTX Challenge #TradFi Trading Strategies Sharing Challenge Gold steadies near two-week high as Fed relief runs into a stubborn dollar
Gold holds near two-week high as Fed hike bets ease after weak payrolls.
Dollar caps bullion as traders await Fed minutes for policy clues today.
JPMorgan sees gold gains capped by soft demand and real-yield risks.
Gold is holding its ground again, but this is not the same rally that carried bullion through the early part of the year. The latest move is being driven less by panic and more by repricing.
A softer US labour-market reading has reduced fears that the Federal Reserve will rush into another rate increase, giving non-yielding assets some breathing space.
Yet the dollar has not rolled over, and that is keeping gold’s rebound measured rather than explosive.
Rate relief steadies bullion
Spot gold was little changed near $4,174.66 an ounce in Asian trade on Monday, after earlier touching its highest level since June 22.
US gold futures for August delivery rose 1.5% to $4,186.70.
The metal is coming off a weekly gain of more than 2%, its first advance in five weeks.
The turn followed signs that hiring in the US economy is slowing, which encouraged traders to scale back expectations for a near-term Fed hike.
That matters because gold pays no interest. When markets price in higher rates, the opportunity cost of holding bullion rises.
When those expectations soften, gold usually gets a cushion.
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