The price of gold held steady to extend the winning streak for a fourth straight day, trading near $1,930 on Tuesday during the first trading hours of the Asian session. Prior to the main central banks’ decisions on interest rates, the pair is meeting upward resistance.

The US Dollar’s (USD) retracement is a key element supporting the price of gold. Following the possibility that the US Federal Reserve (Fed) will maintain interest rates at their forthcoming meeting on Wednesday, market investors have become wary. Investors will carefully examine the central bank’s announcements in search of any clues or details indicating probable future changes in interest rates.

By the end of 2023, the markets expect a 25-basis point rate increase. The resilience of recent US economic statistics is also increasing the likelihood that the Fed will maintain higher interest rates for an extended period, which might limit the upside potential of the yellow metal.

At about 105.10 as of this writing, the US Dollar Index (DXY), which evaluates the performance of the US Dollar (USD) against six other significant currencies, is struggling to maintain its position. The US Treasury rates aim to increase Monday’s losses. By the time of publication, the yield on US 10-year bonds had decreased to 4.30%. The resilience of the dollar is being weakened by depressed yields.

The Bank of England (BoE) is likely to adopt a cautious 25 basis point interest rate hike in its meeting on Thursday, following the same strategy as the European Central Bank (ECB) last week and focusing on the possible risks associated with stagflation.
The probability that the Bank of Japan (BoJ) will retain its very supportive monetary policy stance is currently included in market prices.

Screener Widget – UPDOWNLIVE

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *