GOLD
After the losses of the previous two sessions gold prices are trading flat during early Friday. The non-yielding precious metal looks set to end the week below the
2
,000 mark, as the US dollar and treasury yields recovered the front foot. US treasury yields rose and the US dollar followed suit, following the release of much higher than expected quarterly personal consumption expenditure prices. With PCE prices reading above expectations, jobless claims suddenly declining, and GDP remaining in positive territory, a Fed rate cut in 2023 became less likely. Against this background, the dollar and treasury yields are on the rise, meaning the price of the precious metal is likely to keep going in the opposite direction.
Ricardo Evangelista – Senior Analyst, ActivTrades
After the losses of the previous two sessions gold prices are trading flat during early Friday. The non-yielding precious metal looks set to end the week below the
2
,000 mark, as the US dollar and treasury yields recovered the front foot. US treasury yields rose and the US dollar followed suit, following the release of much higher than expected quarterly personal consumption expenditure prices. With PCE prices reading above expectations, jobless claims suddenly declining, and GDP remaining in positive territory, a Fed rate cut in 2023 became less likely. Against this background, the dollar and treasury yields are on the rise, meaning the price of the precious metal is likely to keep going in the opposite direction. Ricardo Evangelista – Senior Analyst, ActivTrades