GOLD increased sharply despite rising US bond yields
Updated
The week ahead presents many ‘high importance’ risk events ranging from US CPI data to central bank decisions in Canada, New Zealand and the European Union. The FOMC minutes of the March meeting will also provide more insight on Fed thinking, although, the trend of hotter US data may diminish the impact of what was discussed during the March meeting.
DXY IN FOCUS AHEAD OF CPI DATA, NFP BOOST PROVED SHORT-LIVED
Friday’s hotter-than-expected jobs data for March initially sent the dollar higher but the catalyst failed to hold into the close. US CPI data will definitely draw a huge focus from the market due to the stubborn PCE figures and generally robust US data that may delay rate cuts even further.
THE RISK OF A BROADER CONFLICT IN THE MIDDLE EAST TRIGGERED
XAUUSD SAFE HAVEN PUSH
Gold has gone from strength to strength despite rising US yields. The greenback (DXY) registered a minor decline last week but US 2-year and 10-year treasury yields rose for the week.
The prospect of rates remaining on hold for longer, has the potential to see more hawkish repricing for treasuries that increases the opportunity cost of holding the non-interest bearing commodity.
Recent escalations in eastern Europe and the Middle East raise the allure of gold due to its safe haven properties but the market has returned to massively overbought territory, hinting at a potential cooling off period at the start of the week in the absence of further escalation.
![🖥 GOLD MARKET ANALYSIS AND COMMENTARY - [April 08 - April 12]](https://s3.tradingview.com/2/2082iiIU_mid.png)
DXY IN FOCUS AHEAD OF CPI DATA, NFP BOOST PROVED SHORT-LIVEDFriday’s hotter-than-expected jobs data for March initially sent the dollar higher but the catalyst failed to hold into the close. US CPI data will definitely draw a huge focus from the market due to the stubborn PCE figures and generally robust US data that may delay rate cuts even further.
THE RISK OF A BROADER CONFLICT IN THE MIDDLE EAST TRIGGERED
XAUUSD SAFE HAVEN PUSHGold has gone from strength to strength despite rising US yields. The greenback (DXY) registered a minor decline last week but US 2-year and 10-year treasury yields rose for the week.
The prospect of rates remaining on hold for longer, has the potential to see more hawkish repricing for treasuries that increases the opportunity cost of holding the non-interest bearing commodity.
Recent escalations in eastern Europe and the Middle East raise the allure of gold due to its safe haven properties but the market has returned to massively overbought territory, hinting at a potential cooling off period at the start of the week in the absence of further escalation.
Note
Is a rate cut in June a certainty, what will the ECB say this week and what do they need to see in upcoming wages data? Is rising oil prices really something to worry about? These are 5 issues that investors want to receive answers from the ECB.Note
Note
SELL XAUUSD PRICE 2369 - 2367⚡️ ↠↠ Stoploss 2373
→Take Profit 1 2362
↨
→Take Profit 2 2357
BUY XAUUSD PRICE 2326 - 2328⚡️
↠↠ Stoploss 2322
→Take Profit 1 2333
↨
→Take Profit 2 2338
Note
In the context of continuously escalating tensions between Israel and Hamas in the Middle East, gold prices have continued to rise. The precious metal has now maintained its upward momentum for the third consecutive trading session, as demand for haven assets continues to increase amid the current turmoil.Note
Gold fell slightly below $2,350After maintaining above $2,353 at the beginning of the European session, gold is now slightly below $2,350
Note
The CPI report will be especially important amid calm markets, with Powell aching to ignore the strong data, but it's hard to say this was a mistake if the report continues to heat up. On the other hand, if we see rental costs driving component service prices down then the Long USD market is quite strong, so I hope we can achieve both goals, whether reporting is tight or not. Are not.Note
🔻IMF: Global economic growth will reach 2.8% by 2030, that is, 1% less than the historical average, unless major reforms are made to enhance productivity and take advantage of technology.Note
The ECB policy decision is the main focus in today's European session, along with the US PPI report. Market expectations for an interest rate cut in June are key to the ECB decision. Bulls anticipate strong data in the US PPI report following yesterday's above-expected CPI report.Note
🟥US Federal Reserve Member Barkin: The data did not raise our confidence in the spread of declining inflationUS Federal Reserve Bank of Richmond Governor Thomas Barkin said during his speech on Thursday that the recent consumer price inflation data did not increase his confidence that the decline in inflation is spreading as desired to all sectors of the economy.
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