Free Trial

Slightly Stronger In Asia-Pac After USD & US Tsys Weighed On Tuesday

GOLD

In Asia-Pacific trading, gold is $1.70 stronger (+0.1%) at 1990.87, after closing -1.4% at $1989.17.

  • At market close on Tuesday, gold hovered near a two-week low as traders monitored negotiations to resolve the US debt-ceiling deadlock and analysed statements from various Federal Reserve officials regarding interest rate prospects.
  • Tuesday’s drop, reaching its lowest closing price since May 1, was due to strong US retail sales figures and speculation about a resolution to the debt issue. President Joe Biden and congressional leaders expressed optimism about reaching a deal, despite House Speaker Kevin McCarthy warning of significant differences between the two sides.
  • The strengthening of the USD and higher Treasury yields had a significant impact, causing gold to break below the support level at $1,999.6 (the low on May 5) that was established after the release of payroll data, thereby exposing the $1,976.3 level (50-day EMA).

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.