- The dollar strengthens in general after the US economic data.
- Gold accelerates downward correction after a four-day positive streak.
- US yields break higher, Wall Street turns negative.
gold prices They fell more than 1% on Thursday, retreating from the highest level since mid-June amid a stronger USD and rising Treasury yields. The XAU/USD pair posted a fresh two-day low at $1,831/oz.
The dollar wakes up after the data, before the NFP
Gold was already trading lower on Thursday as US economic data strengthened the dollar and triggered a sell-off in Treasuries. The ADP jobs report showed private payrolls rising at 235,000 above the market consensus of 150,000. Initial claims for jobless benefits fell more than expected to 204,000, the lowest level since September.
Markets reacted to the economic data, after staying calm after the FOMC minutes on Wednesday. The DXY rose to 104.96, the highest level in three weeks, while US bonds fell. The US 10-year bond yield rose from 3.70% to 3.76%, while the 2-year bond jumped from 4.39% to 4.48%, the highest level since late November.
The yellow metal decisively broke below $1,850 and fell as low as $1,831. It is hovering around $1,835 after the negative opening of Wall Street. The Dow Jones fell 0.75% and the Nasdaq fell 0.79%.
XAU/USD looks vulnerable at the moment, but losses look limited as long as it holds above the $1,830 area. The mentioned zone is a strong support that if broken should open the doors to another leg down. To the upside, a recovery above $1,850 would change the intraday outlook to positive.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
