FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
HFM information and reviews

XAU/USD climbs to $1,650 area amid sliding US bond yields, weaker USD

1 November 2022

Gold gains strong positive traction on Tuesday amid the emergence of fresh USD selling. Expectations for a less hawkish Fed, sliding US bond yields continue to weigh on the buck. A positive risk tone might cap gains for the metal amid bets for additional Fed rate hikes. Gold attracts some buyers near the $1,630 area and stages a goodish intraday recovery move from over a one-week low touched earlier this Tuesday. The upward trajectory extends through the first half of the European session and lifts the XAU/USD to a fresh daily high, around the $1,650 level in the last hour. The US dollar meets with a fresh supply and stalls its recent strong rebound from over a one-month low, which, in turn, is seen offering support to the dollar-denominated commodity. Speculations that the Fed will signal a less aggressive rate-hiking cycle at the end of its November policy meeting on Wednesday continue to act as a headwind for the greenback.

The repricing of the Fed's policy tightening path leads to a further decline in the US Treasury bond yields. In fact, the benchmark 10-year Treasury note slides back below the 4.0% threshold, which further undermines the buck and provides an additional lift to the non-yielding gold. That said, a combination of factors warrants some caution for bullish traders.

The US central bank is still expected to deliver another supersized 75 bps rate increase for the fourth successive time in as many meetings. Moreover, the fed funds futures point to over a 50% chance of a 50 bps rate hike in December. This, along with a recovery in the global risk sentiment, should keep a lid on any meaningful gains for gold, at least for now. The fundamental backdrop favours bearish traders and suggests that any subsequent move up runs the risk of fizzling out rather quickly near the $1,670-$1,672 supply zone. This, in turn, makes it prudent to wait for strong follow-through buying before positioning for any further appreciating move. Traders now look to the US ISM Manufacturing PMI for a fresh impetus.


Share: Tweet this or Share on Facebook


Citigroup heading for UAE
Citigroup heading for UAE

One of the largest and most famous banks in the world is Citigroup, headquartered in New York City… at least, for now. There have been some employee movements...

6 Dec 2022

XAU/USD upside appears more compelling ahead of US NFP
XAU/USD upside appears more compelling ahead of US NFP

Gold price consolidates recent gains around four-month high after crossing the key resistances. Cautious mood, US Dollar rebound allows XAU/USD bulls to take a breather...

2 Dec 2022

Oil’s correction in rumors about further production cuts by OPEC
Oil’s correction in rumors about further production cuts by OPEC

The price of Crude oil resumed the downward movement after failing to cross above the daily trendline which was valid since late June.The price only rebounded to the upside...

1 Dec 2022

The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

30 Nov 2022

Is Boeing stock about to take off?
Is Boeing stock about to take off?

Boeing stock (BA) has been in free fall since March 2021, from $269 (USD) dropping to $121 at the end of September 2022. And then came a reversal, raising prices to over $175...

29 Nov 2022

Why is western media so positive about the Chinese stock market?
Why is western media so positive about the Chinese stock market?

Premium news sites in the US and Europe are now saying that everything is suddenly going right for China’s stock market. Headlines announced Hong Kong stocks...

28 Nov 2022

Editors' Picks

FXCM information and reviews
ActivTrades information and reviews
RoboForex information and reviews
MultiBank Group information and reviews
MultiBank Group
FxPro information and reviews
Vantage information and reviews

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.