Gold Weekly Forecast: Geopolitics and US inflation report could trigger next directional movement
Gold (XAU/USD) suffered heavy losses at the beginning of the week as a combination of factors triggered a broad market selloff. The metal, however, recovered sharply in the second half of the week and stabilized comfortably above $2,400. Market participants await July inflation data from the US for the next directional clue.
Gold fluctuates wildly as investors adapt to a changing market environment
Gold failed to benefit from escalating geopolitical tensions at the beginning of the week and declined sharply. The unwinding of Japanese Yen (JPY) carry trade, growing fears over a recession in the US and heightened concerns about a deepening conflict in the Middle East triggered a global market selloff on Monday, causing a variety of financial assets, except for the JPY, to suffer heavy losses.
After losing more than 1% on Monday, Gold struggled to find a foothold on Tuesday. Although many assets retraced a portion of Monday’s decline, XAU/USD continued to push lower as the benchmark 10-year US Treasury bond yield staged a decisive rebound, rising nearly 3% on a daily basis.
Gold managed to limit its losses on Wednesday but investors’ focus shifted to risk-sensitive assets on easing concerns over a continuation of the unwinding of the JPY carry trade. Bank of Japan (BoJ) Deputy Governor Shinichi Uchida noted that they will refrain from hiking the policy rate when markets are unstable, noting they must maintain the current degree of monetary easing for the time being.
In the absence of high-impact data releases and fresh geopolitical developments, XAU/USD attracted technical buyers after rising above $2,400 early Thursday and continued to stretch higher on Friday.
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Gold (XAU/USD) suffered heavy losses at the beginning of the week as a combination of factors triggered a broad market selloff. The metal, however, recovered sharply in the second half of the week and stabilized comfortably above $2,400. Market participants await July inflation data from the US for the next directional clue.
Gold fluctuates wildly as investors adapt to a changing market environment
Gold failed to benefit from escalating geopolitical tensions at the beginning of the week and declined sharply. The unwinding of Japanese Yen (JPY) carry trade, growing fears over a recession in the US and heightened concerns about a deepening conflict in the Middle East triggered a global market selloff on Monday, causing a variety of financial assets, except for the JPY, to suffer heavy losses.
After losing more than 1% on Monday, Gold struggled to find a foothold on Tuesday. Although many assets retraced a portion of Monday’s decline, XAU/USD continued to push lower as the benchmark 10-year US Treasury bond yield staged a decisive rebound, rising nearly 3% on a daily basis.
Gold managed to limit its losses on Wednesday but investors’ focus shifted to risk-sensitive assets on easing concerns over a continuation of the unwinding of the JPY carry trade. Bank of Japan (BoJ) Deputy Governor Shinichi Uchida noted that they will refrain from hiking the policy rate when markets are unstable, noting they must maintain the current degree of monetary easing for the time being.
In the absence of high-impact data releases and fresh geopolitical developments, XAU/USD attracted technical buyers after rising above $2,400 early Thursday and continued to stretch higher on Friday.
Gold fluctuates wildly as investors adapt to a changing market environment
Gold failed to benefit from escalating geopolitical tensions at the beginning of the week and declined sharply. The unwinding of Japanese Yen (JPY) carry trade, growing fears over a recession in the US and heightened concerns about a deepening conflict in the Middle East triggered a global market selloff on Monday, causing a variety of financial assets, except for the JPY, to suffer heavy losses.
After losing more than 1% on Monday, Gold struggled to find a foothold on Tuesday. Although many assets retraced a portion of Monday’s decline, XAU/USD continued to push lower as the benchmark 10-year US Treasury bond yield staged a decisive rebound, rising nearly 3% on a daily basis.
Gold managed to limit its losses on Wednesday but investors’ focus shifted to risk-sensitive assets on easing concerns over a continuation of the unwinding of the JPY carry trade. Bank of Japan (BoJ) Deputy Governor Shinichi Uchida noted that they will refrain from hiking the policy rate when markets are unstable, noting they must maintain the current degree of monetary easing for the time being.
In the absence of high-impact data releases and fresh geopolitical developments, XAU/USD attracted technical buyers after rising above $2,400 early Thursday and continued to stretch higher on Friday.