Gold surrenders gains to risk-sensitive equities with EU-US deal in focus
The post Gold surrenders gains to risk-sensitive equities with EU-US deal in focus appeared on BitcoinEthereumNews.com. Gold holds losses as labour market resiliency and stronger services PMI support the Fed’s ‘higher-for-longer’ narrative. Risk appetite improves on hopes of a EU-US trade deal, global equities rally weighs on bullion. XAU/USD momentum stabilises near neutral territory, suggesting that bulls may be losing steam below $3,400. Gold is extending losses for a second straight session on Thursday, pressured by a shift toward risk-on sentiment and a decrease in safe-haven flows. At the time of writing, XAU/USD is hovering above $3,360, retreating from recent highs near $3,457 on renewed hopes of an EU-US trade deal ahead of the August 1 tariff deadline. On the data front, weekly Initial Jobless Claims fell to 217,000, coming in softer than expectations of 227,000 and signaling continued labor market strength. Continuing Claims also came in slightly below forecast at 1.955 million, though still marginally higher than the previous week’s 1.951 million. The trend of lower-than-expected jobless claims in recent weeks has reinforced expectations that the Federal Reserve (Fed) may maintain elevated interest rates. This is supporting US Treasury yields and the US Dollar, both of which are typically bearish for non-yielding assets like Gold. Meanwhile, the S&P Global flash Purchasing Managers’ Index (PMI) data for July revealed diverging sector performance. The Manufacturing PMI dropped sharply to 49.5, falling into contraction territory and missing forecasts of 52.5. In contrast, the Services PMI jumped to 55.2 (vs. 53.0 expected), boosting the Composite PMI to 54.6 from 52.9, indicating strong growth in the services sector. Against this backdrop, the market is increasingly considering the prospect of a more stable global trade environment. According to the CME FedWatch Tool, markets are pricing in a 60% chance of a rate cut in September, with a 38% probability that rates will remain unchanged at the same meeting. Gold daily digest…
The post Gold surrenders gains to risk-sensitive equities with EU-US deal in focus appeared on BitcoinEthereumNews.com.
Gold holds losses as labour market resiliency and stronger services PMI support the Fed’s ‘higher-for-longer’ narrative. Risk appetite improves on hopes of a EU-US trade deal, global equities rally weighs on bullion. XAU/USD momentum stabilises near neutral territory, suggesting that bulls may be losing steam below $3,400. Gold is extending losses for a second straight session on Thursday, pressured by a shift toward risk-on sentiment and a decrease in safe-haven flows. At the time of writing, XAU/USD is hovering above $3,360, retreating from recent highs near $3,457 on renewed hopes of an EU-US trade deal ahead of the August 1 tariff deadline. On the data front, weekly Initial Jobless Claims fell to 217,000, coming in softer than expectations of 227,000 and signaling continued labor market strength. Continuing Claims also came in slightly below forecast at 1.955 million, though still marginally higher than the previous week’s 1.951 million. The trend of lower-than-expected jobless claims in recent weeks has reinforced expectations that the Federal Reserve (Fed) may maintain elevated interest rates. This is supporting US Treasury yields and the US Dollar, both of which are typically bearish for non-yielding assets like Gold. Meanwhile, the S&P Global flash Purchasing Managers’ Index (PMI) data for July revealed diverging sector performance. The Manufacturing PMI dropped sharply to 49.5, falling into contraction territory and missing forecasts of 52.5. In contrast, the Services PMI jumped to 55.2 (vs. 53.0 expected), boosting the Composite PMI to 54.6 from 52.9, indicating strong growth in the services sector. Against this backdrop, the market is increasingly considering the prospect of a more stable global trade environment. According to the CME FedWatch Tool, markets are pricing in a 60% chance of a rate cut in September, with a 38% probability that rates will remain unchanged at the same meeting. Gold daily digest…
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