XAU/USD Retraced Under $1,670, Losing About 2% In Value

Selling pressure almost pushed XAU/USD price to an annual depth after shattering a major support level. Also, this occurred during the start of European Morning. To do this, the yellow metal had to record a 3-days straight downtrend.

Following a boring take-off of the day, United States Treasury yield received offers. This happened as traders Prepares for the European trading period and United States Retail Sales for last month. Having said this, the standard ten years Treasury yield refreshes its 24-hours height at around 3.435%. Furthermore, this happened after experiencing a downside retracement from a 3-month height.

More XAU/USD Price Influencing Factors

Meanwhile, the United States Dollar index corrects its past downtrend near 109.90. This was ongoing when the United States Producer Price Index tested milder reading for last month (August). Furthermore, the United PPI dipped to 8.7% year on year last month from 9.8% in July, as opposed to 8.8% market predictions. All these will somehow combine to influence XAU/USD value dynamics.

Also, the possibility of the Federal Reserve declaring a 75 bps interest rate is 70%, come next week. Furthermore, 30% odds are in favor of a 100 bps Federal Reserve interest rate increase. In the midst of all of these factors the United States stock stays downbeat. This is because it reversed the early Tokyo session’s hopes, as yields and the dollar Index picked up some upside momentum. These will also combine to influence the XAU/USD value.

Moving on, XAU/USD buyers and sellers should wait for the United States Retail Sales for last month (August). Also, this is anticipated to stay constant on MoM. Additionally, it is necessary to know that the hawkish anticipation remained strong despite the recent milder United States inflation fact. Therefore, stronger Retail Sales data may strengthen the USD and burden XAU.

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