Gold prices rallied, breaking above $2,000 in the early hours of Wednesday's Asian trading session. The surge in the precious metal was fueled by lower US Treasury bond yields and a weakened US dollar. Gold spot prices experienced a significant boost on Tuesday, rising from below $1,980 to near the crucial resistance level of $2,010. This upward momentum occurred even as stock prices declined, and the US dollar remained stable.
The recovery of gold on Tuesday took place amid stable US Treasury bond yields. After reaching $2,007, XAU/USD retraced to the $2,000 level. The overall trend still favors an upward trajectory, supported by expectations that the Federal Reserve has completed interest rate hikes, alleviating pressure on the greenback.
Market participants are eagerly awaiting the FOMC minutes. On Wednesday, crucial US data, including Unemployment Claims and Durable Goods Orders, will be released. Reading these figures negatively could propel XAU/USD further above $2,000. However, at the current moment, it appears hesitant to secure a more robust recovery unless Treasury bond yields convincingly drop, indicating they have peaked.
The recovery of gold on Tuesday took place amid stable US Treasury bond yields. After reaching $2,007, XAU/USD retraced to the $2,000 level. The overall trend still favors an upward trajectory, supported by expectations that the Federal Reserve has completed interest rate hikes, alleviating pressure on the greenback.
Market participants are eagerly awaiting the FOMC minutes. On Wednesday, crucial US data, including Unemployment Claims and Durable Goods Orders, will be released. Reading these figures negatively could propel XAU/USD further above $2,000. However, at the current moment, it appears hesitant to secure a more robust recovery unless Treasury bond yields convincingly drop, indicating they have peaked.
