XAUUSD: Gold breaks the nearest bottom
At the end of Wednesday's trading session, spot gold contracts decreased 1.3% to 1,875.79 USD/oz. Gold futures contracts lost 1.4% to 1,893.5 USD/oz.
The prospect of higher US interest rates for longer has sent investors flocking to the safe-haven dollar, making gold more expensive for foreign buyers.
Contributing to reducing the attractiveness of gold, US Government bond yields also still fluctuate near a 16-year peak.
“As long as the higher-for-longer-term narrative persists, it will continue to pressure precious metals,” said Ryan McKay, commodity strategist at TD Securities. Falling below 1,900 USD/oz led to technical selling pressure.
“If inflation data continues to be strong, that will be another thing that is negative for gold,” Mr. McKay said.
The prospect of higher US interest rates for longer has sent investors flocking to the safe-haven dollar, making gold more expensive for foreign buyers.
Contributing to reducing the attractiveness of gold, US Government bond yields also still fluctuate near a 16-year peak.
“As long as the higher-for-longer-term narrative persists, it will continue to pressure precious metals,” said Ryan McKay, commodity strategist at TD Securities. Falling below 1,900 USD/oz led to technical selling pressure.
“If inflation data continues to be strong, that will be another thing that is negative for gold,” Mr. McKay said.
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TP: 1980
SL: 1965