Gold Price News and Forecast: XAU/USD braces for a bumpy road to reocvery above $1775

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Gold Price Analysis: XAU/USD braces for a bumpy road to recovery above $1775 – Confluence Detector

Gold (XAU/USD) is making another recovery attempt from five-month lows of $1765 as the US dollar dips on improved market mood amid coronavirus vaccine and US stimulus hopes. US Treasury Secretary Steve Mnuchin’s push for utilizing $455 billion from the CARES Act also bodes well for gold.

Although, gold’s corrective advance could lose steam, in the wake of hopes for an imminent vaccine rollout. Optimism over a swift vaccine-driven economic recovery diminishes gold’s attractiveness as a safe-haven. Focus shifts to the US data dump and Fed Chair Powell’s testimony.

Gold Price Analysis: US real yields suggest XAU/USD close to a major bottom

Gold could be close to bottoming out and may soon resume the broader uptrend, as real or inflation-adjusted yields look set to dive deeper into the negative territory.

According to the chart tweeted by Crescat Capital Portfolio Manager Otavia Costa, the US five-year real or inflation-adjusted yield (inverted) has breached a trendline, marking an end of a minor consolidation and resumption of the slide from 0.5 to -1.41% seen in the five months to August. As such, demand for gold, a store of value asset, could again spike. However, according to Kyle Rodda, Market Analyst at IG Australia, gold's next move depends on flows in and out of exchange-traded-funds (ETFs).

GBP/USD sticks to red near 1.3650, eyes on Iran sanctions

GBP/USD trades with a negative bias around mid-1.3600s at the start of a new week on Monday. The US Dollar recovers ground due to uncertainty over potential US economic sanctions on Iran, leaving the risk-sensitive British Pound on the backfoot.

EUR/USD stays defensive below 1.1700 amid cautious markets

EUR/USD is trading defensively below 1.1700 in Monday's European trading. The pair struggles as the US Dollar attempts a tepid recovery following last week's US Treasury bond buyback plan-led sell-off. Markets remain unnerved amid US threats to impose economic sanctions on Iran, the details of which are expected to be announced later in the day.

Gold sits at three-month highs near $4,650

Gold is sitting close to its highest level in three months, near $4,650, in the European session on Monday. The precious metal capitalizes on persistent US Dollar weakness, following the US Treasury's buyback plan amid fresh US-Canada trade tensions. Traders await Iran sanction details for further impetus.

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The week ahead: Jackson Hole and Nvidia results to take focus away from Trump

We start the week with the focus squarely on the US. Rising Treasury yields, the Jackson Hole Symposium, inflation and GDP data, along with tariff risks, will dominate market action in the coming days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.