May 17, 2023 04:09 GMT
Slightly Stronger In Asia-Pac After USD & US Tsys Weighed On Tuesday
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).