Rising US Treasury yields and a stronger dollar weighed on the price of gold. However, the macroeconomic background continues to offer support for the yellow metalANZ Bank strategists report.
Expectations around the Fed’s stance will guide the price of gold in the near term
“Gold prices came under pressure from rising expectations that US rates will continue to rise, which gave new support to the dollar. Rising US yields weighed on the non-yielding yellow metal as opportunity cost rises.”
“While market expectations around the Fed’s stance are likely to guide the price of gold in the short term, we see that the macroeconomic background continues to be supportive for gold, with the Fed pausing its hike cycle and the USD resuming its bearish trend.”
Source: Fx Street
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