Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Key points

  • Spot Gold just above 15-week trough
  • Traders await FOMC minutes for more clues on rate hike path
  • Firmer USD, higher bond yields pressure dollar-priced Gold

Spot Gold edged lower on Monday on firmer US Dollar and higher US bond yields, as this week’s focus sets on the minutes of the Federal Reserve June meeting and US Non-Farm Payrolls report.

According to Carlo Alberto De Casa, external analyst at Kinesis Money, the slight drop in Gold prices was due to the risk-on mood in the market.

The yellow metal could continue trading within the $1,900-$1,930 range before the FOMC minutes release on Wednesday, De Casa noted.

Markets are now pricing in an 89% chance of a 25 basis point interest rate increase at the Fed’s meeting in July, according to CME’s FedWatch tool.

Friday’s data on US employment will be closely watched, because another report indicating a resilient jobs market could support the case for more policy tightening by the Fed.

Rising interest rates tend to weigh on the yellow metal’s appeal, as they translate into a higher opportunity cost of holding Gold.

US 10-year Treasury Note yield was last at 3.852%, after hitting 3.886% on Friday – the highest level since March.

As of 12:22 GMT on Monday Spot Gold was edging down 0.28% to trade at $1,914.24 per troy ounce. Last week, the precious metal went down as low as $1,893.07 per troy ounce, which has been its weakest price level since March 15th ($1,885.79 per troy ounce).

Gold Futures for delivery in August were losing 0.39% on the day to trade at $1,921.95 per troy ounce, while Silver Futures for delivery in September were down 0.12% to trade at $22.992 per troy ounce.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was edging up 0.20% to 103.126 on Monday. Last Friday, the DXY went up as high as 103.543, which has been its strongest level since June 13th (103.624).

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • USD/INR: Rupee weakens to 10-week low amid broad risk aversionUSD/INR: Rupee weakens to 10-week low amid broad risk aversion Key pointsRupee registers fresh 10-week low amid risk-off mood Safe haven buying, macro data boost US Dollar RBI probably sold dollars at 82.75-82.80 Rupee levels - media reportIndia’s Rupee extended losses against the […]
  • Stocks to watch, the early moversStocks to watch, the early movers FedEx, reported quarterly results at 7:30 EDT this morning. The company exceeded estimates with earnings posting $2.13 a share when forecast was for $1.96. The revenues were in line with expectations. The company says its still struggling with […]
  • Gold trading outlook: futures climb as Fed interest rate hike seen delayedGold trading outlook: futures climb as Fed interest rate hike seen delayed Gold edged up on Thursday to end two days of losses after minutes from the Federal Reserves last meeting indicated that some policy makers were keen on keeping interest rates low.Comex gold for delivery in April gained 1.37% to $1 216.6 […]
  • Bitcoin’s price drops below the $25,000 support for a short periodBitcoin’s price drops below the $25,000 support for a short period The price of Bitcoin fluctuated considerably during the course of the last 24 hours, peaking at $26,017.77 and falling to $24,902.15, respectively, from a starting price of around $25,984.32. These price ranges suggest a moderate level of […]
  • Forex Market: EUR/GBP daily forecastForex Market: EUR/GBP daily forecast During yesterday’s trading session EUR/GBP traded within the range of 0.7944-0.7963 and closed at 0.7952.At 6:52 GMT today EUR/GBP was gaining 0.11% for the day to trade at 0.7960. The pair touched a daily high at 0.7965 at 6:25 GMT, […]
  • GBP/USD tumbled on disappointing manufacturing dataGBP/USD tumbled on disappointing manufacturing data British pound lost positions sharply against the US dollar on Tuesday, following the official report, regarding manufacturing production, which stated the largest drop in four months in May.GBP/USD tumbled to a session low at 1.4831 at […]