The post Gold shines bright as soft US ADP report ignites rate cut expectation appeared on BitcoinEthereumNews.com.

Gold price is gaining 1.18% amid mixed US economic data and lower Treasury yields. US 10-year Treasury yield drops to lowest level since April, following a softer-than-expected jobs report. US Dollar Index increases 0.22% to 104.7 but fails to curb Gold’s advance. Gold’s price remains range-bound and advanced on Wednesday, making a U-turn to Tuesday’s price action following the release of mixed US economic data that could warrant lower borrowing costs set by the US Federal Reserve (Fed). Therefore, US Treasury yields dropped, and the Greenback rose, yet failed to put a lid on the yellow metal. The XAU/USD trades at $2,353, up 1.18%. The US 10-year benchmark note coupon added to its weekly losses as it went down three basis points to 4.297%, its lowest level since April, following a softer-than-expected US jobs report. The Institute for Supply Management (ISM) showed the US economy continues to expand in its service sector, boosting both the Greenback and the golden metal. The US Dollar Index (DXY), which tracks the Greenback’s performance against a basket of six currencies, rises 0.22% to 104.7. US yields continued to edge lower due to investors beginning to price in more than a 25-basis-point (bps) rate cut toward the end of 2024. Via data from the Chicago Board of Trade (CBOT), specifically the December 2024 fed funds futures contract, traders project 37 bps of easing. The golden metal was also boosted by commodity prices stabilizing following Tuesday’s plunge, which witnessed a more than 4% drop during the first two days of the week. Additionally, upbeat Caixin PMI data from China hints that the economy might continue to grow. Consequently, US Treasury bond yields dropped, and the Greenback extended its losses to three straight days. The US 10-year Treasury bond yields plunged eleven basis points to 4.392%. Daily…

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Filed under: News - @ June 6, 2024 2:20 am