- Gold spot prices (XAU / USD) have spent most of Wednesday’s session on the defensive.
- The strength of the USD and equity markets have weighed on precious metals.
- But the signs from the bond brands are more optimistic; inflation expectations have recovered.
Gold Spot Prices (XAU / USD) They have spent most of Wednesday’s session on the defensive and are currently trading at the lows of 1,830 (just above the two-week lows), having retreated from the highs of the Asia Pacific session to the lows of $ 1,840. . Currently, the precious metal is trading around 0.3% or down $ 5 on the day.
Strong US ISM PMI figures released so far this week also appear to be fueling market optimism, as they show the US economy holding up better than feared, just when the economy is expected to accelerate with the most recently approved stimulus package. This is arguably being viewed as a positive dollar (and a negative precious metal), even if all of the stimulus will be financed by debt, most of which will be monetized by the Fed, thus further expanding the money supply (a positive typical of precious metals).
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