,XAU/USD renews daily lows near $1,878 price level because the USD grows stronger, and this affected the pair during the early hours of the important week inside which the Federal Reserve monetary policy and the US monthly jobs statements will be given.
The promoters that calls for much attention from market partakers are the reduction of the balance sheet, and more counseling on the interest rates. The counseling coming from the Federal Reserve will give the plane for restoring the interest rate to an unbiased point. As the world gradually moves from the age of paper currency towards a tight liquidity ecosystem, which will in the long run cause changes in diverse assets.
More Details on Promoter That Caused XAU/USD Fall
Adding to the worries ahead of the US data and Federal Reserve decision, is the increasing covid cases in countries that are the biggest consumer of gold such as China and India, which has a degrading effect on the gold price, causing XAU/USD fall. Not long ago, India recorded its highest active covid case in 5 weeks, while Beijing in China prepares for more rigid activity control as the country witnesses an increased infection rate of the covid virus.
The war between Ukraine and Russia, worries of poor performance of the world economy, and inflation rise, have contributed to the increase in the value of the US dollar due to its high demand as a safe-haven currency. In addition, the US ten years Treasury yield has continued its upward movement and is currently near 2.93 percent.
In contribution to the above-mentioned promoters is the Institute for Supply Management(ISM) Purchasing Manager Index (PMI) for last month (April), which is anticipated to arrive at 58 as against 57.1 before, is also relevant for determining bearing in the nearest future.
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