- Gold price recovers the recent losses on the stable US Dollar after recent gains.
- Downbeat US Bond yields could offer support for the precious metal.
- Israel's delay on ground assault plan in Gaza weakens the demand for safe-haven asset Gold.
- Solid US PMI data supported the US Dollar to rebound from the monthly low.
Gold price snaps the losing streak, trading higher around $1,970 per troy ounce during the Asian session on Wednesday. The price of the precious metal receives upward support due to the stable US Dollar (USD) post-trimming recent losses.
Moreover, being a non-interest-bearing asset, the opportunity cost of holding Gold eases, which could be attributed to the downbeat US Treasury yields.
However, the improved risk sentiment, with the postponement of Israel's ground assault plan in Gaza diminished the shine of the precious metal regarded as a safe-haven asset.
The positive outlook is being reinforced by China's plan to issue additional sovereign debt. Constructive dialogues between the United States and China during their initial economic working group meeting also contribute to the prevailing optimism.
The US Dollar Index (DXY) rebounded from monthly lows, hovering around 106.20, propelled by encouraging preliminary S&P Global PMI figures released on Tuesday.
The decline in US Treasury yields could exert downward pressure on the US Dollar (USD), with the 10-year yield standing at 4.82%.
US S&P Global Composite PMI showed growth in October, rising from 50.2 to 51.0. The Services PMI experienced an increase, reaching 50.9, while the Manufacturing PMI rose to 50.0. This marks the first time in the last six months that manufacturing has sustained a level at or above the 50-point threshold, signaling a positive shift in that sector.
Investors will likely monitor the US Q3 Gross Domestic Product (GDP) on Thursday, with attention also on the US Core Personal Consumption Expenditures (PCE) data expected on Friday.
(This story was corrected on October 25 at 09:56 GMT to say that the US Manufacturing PMI came in at or above 50 for the first time in six months. A previous version of the story said that the PMI had remained above 50 for the last six months.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD jumps to mid-0.6500s on weaker USD
AUD/USD touches a near two-week top during the Asian session on Monday as a sharp pullback in the US bond yields prompts some USD profit-taking. Moreover, the upbeat market mood supports the risk-sensitive Aussie amid the RBA's hawkish stance.
USD/JPY languishes below 154.00 on USD profit-taking
USD/JPY slides back closer to last week's swing low, below the 154.00 mark during the Asian session on Monday. Retreating US bond yields drags the USD away from a two-year top high and drives flows towards the lower-yielding JPY, though the BoJ uncertainty could limit losses for the currency pair.
Gold touches near three-week high on sliding US bond yields, USD weakness
Gold price builds on Friday's positive move beyond the $2,700 mark and climbs to a nearly three-week high on Monday. The USD pulls back from a two-year high on the back of retreating US bond yields and benefits the commodity.
Elections, inflation, and the bond market
The Federal Reserve believes inflation is no longer a concern for consumers and the time has come to ensure the rate of change of prices does not decline any further.
Read more
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.