The post Gold climbs to near two-week high as USD selling remains unabated ahead of US PMI appeared on BitcoinEthereumNews.com.

Gold price attracts some haven flows in the wake of geopolitical tensions in the Middle East. The USD dives to a fresh three-week low and provides an additional boost to the commodity. Hawkish FOMC minutes remain supportive of elevated US bond yields and might cap gains. Gold price (XAU/USD) climbs to a nearly two-week high during the first half of the European session on Thursday, with bulls now looking to build on the momentum beyond the 50-day Simple Moving Average (SMA) pivotal resistance. The US Dollar (USD) dives to its lowest level in almost three weeks in the absence of fresh hawkish signals from the FOMC meeting minutes and turns out to be a key factor benefitting the commodity. Apart from this, a further escalation of geopolitical tensions in the Middle East offers additional support to the safe-haven precious metal and remains supportive of the positive move. That said, elevated US Treasury bond yields, bolstered by the growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer, might hold back traders from placing fresh bullish bets around the non-yielding Gold price. Apart from this, the risk-on impulse – as depicted by a generally positive tone around the equity markets – might further contribute to capping the upside for the precious metal. This makes it prudent to wait for sustained strength and acceptance above the 50-day SMA barrier before positioning for an extension of the recent goodish rebound from a two-month low. Daily Digest Market Movers: Gold price continues scaling higher amid heavily offered tone surrounding the USD The recent attacks by Yemen’s Houthi rebels on commercial vessels in the Red Sea and Bab al-Mandab strait stoke worries about a further escalation of military action in the Middle East, underpinning the safe-haven Gold price. The US Central…

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Filed under: News - @ February 22, 2024 11:16 am