As the US Treasury bond yields retreat ahead of crucial economic data, the price of gold rallied over 1% on Monday during the mid-North American session. The 10-year yield dropped to 3.902%, driving demand for Gold’s safe-haven status amidst ongoing tensions in the Middle East with no ceasefire in sight.
Traders are eagerly awaiting the release of the latest Consumer Price Index (CPI) report for July, with expectations of an improvement in the disinflation process. The XAU/USD trades at $2,467 after bouncing off a daily low of $2,423.
Market sentiment turned sour due to the lack of efforts to reach a ceasefire agreement in the Middle East, prompting a flight to Gold’s safe-haven status. Meanwhile, Federal Reserve Governor Michele Bowman’s neutral stance on inflation signaled cautious optimism.
The upcoming economic calendar in the US will feature the release of inflation figures, Retail Sales data, and the University of Michigan (UoM) Consumer Sentiment report later in the week.
Market Analysis and Outlook
- Gold price soars ahead of US data release
- Key economic indicators to watch: CPI, Retail Sales
- Technical analysis: Gold price advances past $2,450
- Factors influencing Gold price movements
- FAQs about Gold and its role in the global economy
Technical Analysis: Gold Price Advances Past $2,450
Gold’s uptrend continued as prices approached $2,470, with momentum favoring buyers. The Relative Strength Index (RSI) indicates a bullish outlook, with resistance levels at $2,483 and $2,500. On the downside, support levels are at $2,450, $2,400, and $2,373.
Gold FAQs
- Gold as a safe-haven asset
- Central banks’ role in Gold reserves
- Correlation of Gold with US Dollar and Treasuries
- Factors influencing Gold price movements
Overall, the surge in Gold price amidst retreat in US Treasury yields and geopolitical tensions highlights the metal’s safe-haven appeal. Investors should monitor key economic data and global developments to make informed decisions regarding their investments in Gold.