XAU/USD stays pressurized even after it had corrected off its in-day low. Also, this is happening for the first time in 4-days, while buyers took a break near the monthly high. The pair’s latest weakness may be attributed to the prevalent cautious mood before the important United States employment data for July.
Furthermore, we can assume that XAU/USD is capitalizing on the momentum with which it broke out previously. Gold surpassed the $1,745 – $$1,750 ceiling area. Subsequently, it then gained foothold for three days in a row three days ago (Friday). The said momentum thrust Gold to more than n 3-week high, near$1,767-$1,768 in the early hours of the European trading session. However, this move was aided by the predominant United States dollar selling bias.
Further Details on XAU/USD
A combined tightening of 92 basis points is being weighed in by the market before the close of this year. Nevertheless, this point was reduced from 108 basis points before the Federal Reserve decision last week Wednesday. Subsequently, this decision resulted in a regression in the United State Treasury bond. And this applied a downward pull on the dollar
Frankly, the yield on the ten years United States government bond has reduced to the lowest since the fourth month of this year (April). Also, this is adding to the movements in the direction of XAU, subsequently Pushing up the value of the XAU/USD pair.
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