Gold price tumbles below $3,200 on trade optimism and rising US yields
The post Gold price tumbles below $3,200 on trade optimism and rising US yields appeared on BitcoinEthereumNews.com. Gold fails to benefit from softer USD as markets eye upcoming US PPI and Retail Sales for inflation clues. Risk appetite improves on US trade diplomacy; safe-haven flows unwind, pushing Gold to its lowest level since April 11. Rising US Treasury yields and the Fed’s cautious stance reduce bets on aggressive rate cuts. Gold price plummeted for the second day out of three on Wednesday, driven mainly by an improvement in risk appetite following positive trade news linked to the United States (US). This, along with a bearish technical chart pattern, pushed the yellow metal below the $3,200 figure for the first time since April 11. At the time of writing, XAU/USD trades at $3,182, down by more than 2%, as the trade war truce between Washington and Beijing has lifted traders’ spirits amid some uncertainty about the global economic outlook. US President Donald Trump’s tour in the Middle East has kept the market mood positive as he strikes deals with various countries. News that deals with Japan and South Korea seem to be close has weighed on the safe appeal of Bullion, as investors shift capital toward riskier assets. This weighed on the non-yielding metal, which has failed to capitalize on US Dollar weakness, as rumors circulated that the Trump administration favors a weaker Greenback. Reports suggested that the White House could pressure other countries to let their currencies appreciate. US Treasury bond yields rose sharply on Wednesday, despite the latest inflation report showing that price measures in April were unchanged on an annual basis compared to March figures. Usually, lower inflation environments push central banks to ease monetary policy. Nevertheless, the Federal Reserve’s (Fed) wait-and-see stance was further reaffirmed by officials appearing in the news since last Friday. This prompted investors to reduce their bets that the Fed…
The post Gold price tumbles below $3,200 on trade optimism and rising US yields appeared on BitcoinEthereumNews.com.
Gold fails to benefit from softer USD as markets eye upcoming US PPI and Retail Sales for inflation clues. Risk appetite improves on US trade diplomacy; safe-haven flows unwind, pushing Gold to its lowest level since April 11. Rising US Treasury yields and the Fed’s cautious stance reduce bets on aggressive rate cuts. Gold price plummeted for the second day out of three on Wednesday, driven mainly by an improvement in risk appetite following positive trade news linked to the United States (US). This, along with a bearish technical chart pattern, pushed the yellow metal below the $3,200 figure for the first time since April 11. At the time of writing, XAU/USD trades at $3,182, down by more than 2%, as the trade war truce between Washington and Beijing has lifted traders’ spirits amid some uncertainty about the global economic outlook. US President Donald Trump’s tour in the Middle East has kept the market mood positive as he strikes deals with various countries. News that deals with Japan and South Korea seem to be close has weighed on the safe appeal of Bullion, as investors shift capital toward riskier assets. This weighed on the non-yielding metal, which has failed to capitalize on US Dollar weakness, as rumors circulated that the Trump administration favors a weaker Greenback. Reports suggested that the White House could pressure other countries to let their currencies appreciate. US Treasury bond yields rose sharply on Wednesday, despite the latest inflation report showing that price measures in April were unchanged on an annual basis compared to March figures. Usually, lower inflation environments push central banks to ease monetary policy. Nevertheless, the Federal Reserve’s (Fed) wait-and-see stance was further reaffirmed by officials appearing in the news since last Friday. This prompted investors to reduce their bets that the Fed…
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