XAUUSD Instant Drop | Market outlook
The week began with the most significant instant drop in the precious metal rate since the beginning of the year. The main reason for such dynamics was the investor’s reaction to the positive report on the US labor market. Still, the catalyst for the decline was investors’ expectations for the subsequent actions of the US Federal Reserve. During his speeches, the head of the regulator Jerome Powell noted that in case of a significant improvement on the labor market, the department might begin to close the quantitative easing program earlier than planned. Additional pressure on the instrument was also exerted by an increase in the yield of 10-year Treasury bonds, as gold does not generate interest income.
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