- US Treasury yields advance in thin trading, Wall Street trades mixed.
- The US Dollar is weak amid signs of easing US inflation and growth-related hopes.
- XAU/USD jumped to a fresh three-week high but quickly returned to its comfort zone.
XAU/USD jumped to a fresh three-week high of $1,833.32 a troy ounce following Wall Street’s opening amid a better market mood maintaining market players in risk-on mode. Stocks advanced despite tepid US data, while the greenback rallied despite firmer US Treasury yields.
The bullish momentum of the bright metal faded as the session developed, and it fell back towards the current $1,810 price zone, retaining its long-term upward bias. It is worth adding that volumes are low heading into year-end, with most major pairs and assets holding within familiar levels, despite some short-lived directional spikes.
US Dollar down amid an upbeat mood
Market participants welcome news that US inflation keeps receding, according to the core PCE Price Index released last Friday. Another catalyst for the upbeat mood came from China, as the country is further easing COVID-related restrictions.
Technically, according to FXStreet.com chief analyst Valeria Bednarik, “the daily chart shows that the pair keeps developing above all of its moving averages, with the 20 Simple Moving Average (SMA) extending its advance above the 200 SMA, in line with the dominant bullish trend. Technical indicators, in the meantime, picked up from around their midlines, offering firmly bullish upward slopes within positive levels.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD flirts with daily tops near 1.0730
The continuation of the selling pressure in the Greenback now lends further oxygen to the risk complex, encouraging EUR/USD to revisit the area of daily highs near 1.0730.
USD/JPY looks stable around 156.50 as suspicious intervention lingers
USD/JPY remains well on the defensive in the mid-156.00s albeit off daily lows, as market participants continue to digest the still-unconfirmed FX intervention by the Japanese MoF earlier in the Asian session.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Five Fundamentals for the week: Fed fears, Nonfarm Payrolls, Middle East promise an explosive week Premium
Higher inflation is set to push Fed Chair Powell and his colleagues to a hawkish decision. Nonfarm Payrolls are set to rock markets, but the ISM Services PMI released immediately afterward could steal the show.