The post Gold price retreats from one-month peak amid bullish USD, elevated US bond yields appeared on BitcoinEthereumNews.com.

Gold price kicks off the week on a softer note and pulls back from a one-month top set on Friday. Hawkish Fed expectations, elevated US bond yields and a bullish USD weigh on the precious metal. The risk-off mood could offer support to the safe-haven XAU/USD pair and help limit further losses. Gold price (XAU/USD) attracts some sellers during the Asian session on Monday and for now, seems to have snapped a four-day winning streak to the $2,700 neighborhood, or a one-month high touched on Friday. The upbeat US Nonfarm Payrolls (NFP) report reinforced market expectations that the Federal Reserve (Fed) will pause its rate-cutting cycle later this month. This keeps the US Treasury bond yields elevated near their highest level in over a year and the US Dollar (USD) near a two-year peak, which, in turn, exerts some pressure on the non-yielding yellow metal.  Meanwhile, hawkish Fed expectations, along with persistent geopolitical tensions, dampen investors’ appetite for riskier assets. This is evident from a weaker tone around the equity markets and should offer some support to the safe-haven Gold price. Hence, it will be prudent to wait for strong follow-through selling before confirming that the XAU/USD’s move-up witnessed over the past three weeks or so has run its course and positioning for any meaningful corrective decline. Investors now look forward to this week’s release of the US inflation figures for some meaningful impetus.  Gold price drifts lower as upbeat US NFP reaffirms bets that the Fed will slow its rate-cutting cycle The US Bureau of Labor Statistics (BLS) reported on Friday that Nonfarm Payrolls rose by 256,000 in December, well above the 212,000 in the previous month and market expectations for a reading of 160,000. Other details of the report showed that the Unemployment Rate unexpectedly ticked lower to…

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Filed under: News - @ January 13, 2025 5:25 am