Gold price hovers near record high, bulls seem unaffected by elevated US bond yields
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Gold price regains positive traction following the overnight pullback from the all-time peak. The US political uncertainty and Middle East tensions underpin the safe-haven XAU/USD. The easing monetary policy environment offsets rising US bond yields and remains supportive. Gold price (XAU/USD) attracts some dip-buying during the Asian session on Tuesday and remains within the striking distance of a fresh record peak, around the $2,740-2,741 area touched the previous day. The uncertainty surrounding the US Presidential election on November 5, along with the risk of a broader Middle East conflict and the expected interest rate cuts by major central banks, continue to offer some support to the safe-haven precious metal. Meanwhile, the US Dollar (USD) stands firm near its highest level since early August amid the recent surge in the US Treasury bond yields, bolstered by bets for a smaller interest rate cut by the Federal Reserve (Fed) in November. This, along with slightly overbought conditions on the daily chart, might hold back traders from placing fresh bullish bets around the Gold price and cap gains in the absence of any relevant market-moving US economic data. Daily Digest Market Movers: Gold price continues to draw support from a combination of factors, despite bullish USD A projectile crossing from Lebanon fell in an open area in central Israel, while the latter warned of more attacks on Hezbollah after targeting the Iran-backed group’s financial operations. The European Central Bank last week lowered interest rates for the third time this year – marking the first back-to-back rate cut in 13 years – and eyes more cuts amid an economic downturn. Weak inflation data from the UK solidified bets for more aggressive rate cuts by the Bank of England and the Federal Reserve is also anticipated to lower borrowing costs further. Opinion polls indicate that…
Filed under: News - @ October 22, 2024 5:23 am