Gold price extends losing spell amid upbeat US Dollar ahead of FOMC Minutes
The post Gold price extends losing spell amid upbeat US Dollar ahead of FOMC Minutes appeared on BitcoinEthereumNews.com.
Gold price drops further as fading Fed 50 bps rate cut bets strengthened the US Dollar’s appeal. The downside in Gold price is expected to be limited due to geopolitical tensions. Investors await the FOMC Minutes and the US inflation data for September. Gold price (XAU/USD) extends its losing streak for the sixth consecutive trading day on Wednesday. The precious metal has been battered by the upbeat US Dollar (USD), which has strengthened as traders are pricing out another Federal Reserve (Fed) larger-than-usual interest rate cut of 50 basis points (bps) in their next meeting in November. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, has extended its upside to near 102.70. An appreciation in the US Dollar makes investment in the Gold price an expensive bet for investors. Meanwhile, 10-year US Treasury yields drop to near 4.02% in Wednesday’s European session but is close to a more than two-month high. Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Gold. Traders have priced out Fed large rate cut bets as upbeat United States (US) Nonfarm Payrolls (NFP) data for September reduced the risk of an economic slowdown. The US job report showed that labor demand remained robust, the Unemployment Rate decelerated, and wage growth was stronger than expected. However, the downside in Gold price is expected to remain limited due to escalating tensions in the Middle East region. The war between Israel and Iran-backed-Hezbollah intensified after the former killed Hezbollah leader Hassan Nasrallah and his subsequent replacements. Historically, the appeal of precious metals, such as Gold, improved amid geopolitical woes. Daily digest market movers: Gold price drops as US Dollar extends upside Gold price is expected to remain on tenterhooks with investors focusing on…
Filed under: News - @ October 9, 2024 9:25 am