XAU/USD comment: Real yields continue to weigh on Gold prices

Gold prices have been falling since mid-July as the USD appreciated. With moderate inflation and expectations of further Fed rate hikes, real yields have continued to climb.
Yesterday's FOMC minutes reaffirmed the hawkish thesis and mentioned future rate hikes if necessary. Therefore, US government bond yields are expected to continue to rise higher in the near future.

The probability that the Fed rate has changed significantly between September 2023 and approximately May/June 2024. Markets are looking to weakness in the US labor market to change the current interest rate thesis. and until then, gold may remain under pressure.
XAUUSD BUY 1883-1885🕯

✅ TP1: 1892
✅ TP2: 1900

⚠️ SL: 1881

הערה:

Gold prices found stability above their lowest point in five months on Monday. This came after a five-session decline, as investors prepared for the upcoming gathering of central bankers in Jackson Hole, Wyoming. This event will provide insights into the economy and potential interest rate changes.

הערה:

Spot gold traded at $1,888.36 per ounce at 0124 GMT, maintaining stability, while U.S. gold futures increased by 0.1% to reach $1,917.70.

הערה:

Last week, prices hit their lowest point since mid-March, reaching $1,883.70. This decline was driven by robust economic data, which increased expectations of an extended period of higher U.S. interest rates, consequently diminishing demand for gold, which offers no interest yield.

הערה:

* In an anticipated move, China reduced its one-year benchmark lending rate on Monday, as part of efforts to boost credit demand. However, the surprise came as they opted to leave the five-year rate unchanged, contrary to market expectations.

הערה:

SPDR Gold Trust (GLD), the largest gold-backed exchange-traded fund globally, reported an increase in its holdings. On Friday, holdings rose by 0.3%, reaching 890.10 tonnes, compared to the previous day's total of 887.50 tonnes.