Gold price hovers around seven-month lows on upbeat US Dollar.
Risk-off sentiment exerts pressure on non-yielding assets like Gold.
Upbeat US jobs data reinforces the US Bond yields; providing support to the Greenback.
Gold price continues its losing streak that began on September 25, trading lower around $1,820 per troy ounce during the early Asian trading session on Wednesday. The prices of Gold are facing downward pressure amid risk-off sentiment and a stronger US Dollar (USD).
Moderate Chinese economic data released over the weekend failed to contribute any support for the precious metal. China’s NBS Manufacturing PMI for August grew to 50.2 from the previous 49.7 figures, exceeding the 50.0 expected.
Non-manufacturing PMI rose to 51.7 from the 51.0 previous reading, surpassing the market consensus of 51.5. Furthermore, Caixin Manufacturing’s PMI reduced to 50.6 in September from the previous print of 51.0, which was expected to improve to 51.2.
US Dollar Index (DXY) surged to an 11-month high in the previous session, propelled by robust US employment data and higher US Treasury yields. The spot hovers around 107.10 at the time of writing.
US JOLTS Job Openings outpaced expectations, contributing to an uptick in US Treasury yields. The 10-year US Bond yield reached its highest level since 2007, hitting 4.81% on Tuesday.
US JOLTS Job Openings improved to 9.61 million in August from the previous reading of 8.92 million, surpassing market expectations. Furthermore, cautious sentiments surrounding the US Federal Reserve’s (Fed) interest rate trajectory are bolstering positive sentiment for the Greenback.
Cleveland Federal Reserve President Loretta Mester indicated a likelihood of favoring an interest rate hike at the next meeting if the current economic conditions persist. Conversely, Atlanta Fed President Raphael Bostic shared a patient perspective on the Fed’s policy outlook, stating that there is no rush to raise or reduce rates.
Market participants await the US employment data, with the release of the ADP report on Wednesday and the Nonfarm Payrolls on Friday.
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.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/gold-price-forecast-xau-usd-extends-losses-toward-1-800-focus-on-us-employment-data-202310040206
