Strong U.S. Economic Data Weighs on Gold Amid Rate Hike Expectat for OANDA:XAUUSD by Forex_Gold_EUR

Strong U.S. Economic Data Weighs on Gold Amid Rate Hike Expectat

"Gold Faces Increased Selling Pressure as Strong U.S. Economic Data Spurs Expectations of Prolonged Higher Interest Rates," according to Lukman Otunuga, Manager of Market Analysis at FXTM, as the U.S. ISM business conditions barometer for service companies climbed to 54.5% in August from 52.7%, marking the eighth consecutive reading above the 50% expansion threshold. Simultaneously, the ICE U.S. Dollar Index (DXY) surged to 105.02, its highest level in approximately six months, while the yield on the 10-year Treasury note (BX:TMUBMUSD10Y) rose to 4.295% from Tuesday's 4.267%.

XAUUSD SELL LIMIT 1922 - 1924 🔽🔽

🟢TP1: 1918
🟢TP2: 1914

🔴SL: 1928

Note

Running Entry Sell

Note

Gold hovered near a one-week low on Thursday, continuing its five-day streak of declines. Meanwhile, the dollar remained at its highest level since mid-March, driven by data indicating an unexpected strengthening of the U.S. services sector in August.

Note

* Spot gold (GOLD) inched up by 0.1% to reach $1,917.99 per ounce as of 0120 GMT, marking its lowest point since August 29th. Meanwhile, U.S. gold futures (GOLD) declined by 0.1%, settling at $1,942.20.

Note

Gold prices remained close to a one-week low on Thursday after experiencing five consecutive sessions of declines. This downward trend coincided with the dollar maintaining its position at mid-March highs, driven by unexpected growth in the U.S. services sector in August.

Note

XAUUSD SCALP BUY LIMIT 1916 - 1917 🔼🔼

🟢TP1: 1922

🔴SL: 1915

Note

Spot gold (GOLD) remained stable at $1,919.68 per ounce as of 0410 GMT, but continued to linger near its lowest point since August 29th, which it reached in the previous session. Meanwhile, U.S. gold futures (GOLD) maintained their position at $1,944.00.

Note

The U.S. dollar sat at its highest level since March 16, while the benchmark U.S. Treasury yield saw an increase following the release of robust U.S. services sector data on Wednesday. This data suggested that inflationary pressures are still present.

Note

On Thursday, gold remained under $1,920 per ounce, maintaining recent losses and encountering pressure from a surging dollar due to unexpectedly robust U.S. services sector data, which amplified concerns about inflation and potential interest rate hikes.

Note

On Wednesday, Boston Fed President Susan Collins emphasized the importance of the U.S. central bank proceeding cautiously with its next monetary policy moves, even as she acknowledged indications of progress in curbing inflation.

According to a Federal Reserve report released on Wednesday, U.S. economic growth remained moderate in July and August, coinciding with a cooling labor market and decreasing inflationary pressures.

Note

BUY SCALP +30pips . Move SL to Entry 📣📣

Note

Nice XAUUSD

Forex_Gold_EUR

Related publications

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.