Gold price tumbles as US yields surge
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Gold price drops 0.14%, trading at $2,397, influenced by higher US Treasury yields. US President Biden exits race and endorses VP Harris, creating political uncertainty and undermining Gold. Wall Street opens positively post-Biden’s announcement, US Dollar Index remains steady at 104.34. Gold price extends its losses for the fourth straight day yet remains hovering around $2,400, capped by rising US Treasury bond yields. The Greenback stays firm as investors diggest news that US President Joe Biden exited the Presidential race and endorsed Vice President Kamala Harris, who would like to compete against former US President Donald Trump in the November 5 elections. The XAU/USD trades at $2,397, down 0.14%. Wall Street began the week on a positive note, which could be seen as a positive signal after Biden’s decision. Meanwhile, the US 10-year benchmark note coupon edged up two basis points to 4.26%, a headwind for the precious metal. Analyst at Stone X commented that Trump’s victory would be favorable to Gold due to his tax cuts proposals, less regulation, and a widened budget deficit. “Trump would be inflationary and potentially incendiary in geopolitical terms, while Harris’ foreign affairs policy is as yet undefined so that favours gold for now, but not possibly in the longer term.” Meanwhile, traders are eyeing the release of the preliminary reading of Gross Domestic Product (GDP) figures for the second quarter alongside the Federal Reserve’s preferred gauge for inflation, the Core Personal Consumption Expenditure (PCE) Price Index. The US Dollar Index (DXY), which tracks the currency’s performance against six other currencies and is virtually unchanged at 104.34. This has kept Gold prices beneath the $2,400 mark. Daily digest market movers: Gold price drops beneath key support at $2,400 Gold traders eye the release of crucial economic data, like Durable Goods Orders, the release of…
Filed under: News - @ July 23, 2024 2:26 am