This Thursday, gold prices remained near the lowest level in a week after 5 consecutive sessions of decline. The main reason is that the USD reached its highest level since mid-March, after data showed that the US service sector unexpectedly recovered in August. Spot gold was stable at 1,918. 0.14 USD/ounce at 05:35 GMT and hovered near the lowest since August 29 in the previous session. US gold futures fell 0.1% to $1,942.30.
Meanwhile, the US dollar reached its highest level since March 16. US Treasury yields also rose after stronger-than-expected US services data on Wednesday, suggesting inflationary pressures persist.
Although the Fed has completed its tightening in the current cycle, what remains highly uncertain is the prospect of a Fed rate cut in 2024. Gold could continue to fall until policy changes. The Fed's dovish axis emerges
The higher benefit of the US increasing the opportunity cost of holding gold, which earns no interest.
Meanwhile, the US dollar reached its highest level since March 16. US Treasury yields also rose after stronger-than-expected US services data on Wednesday, suggesting inflationary pressures persist.
Although the Fed has completed its tightening in the current cycle, what remains highly uncertain is the prospect of a Fed rate cut in 2024. Gold could continue to fall until policy changes. The Fed's dovish axis emerges
The higher benefit of the US increasing the opportunity cost of holding gold, which earns no interest.
🟢TP1: 1920
🟢TP2: 1928
🔴SL: 1902