Edge-Forex Forex

Gold Making Fresh Gains

Gold prices bring in some new gains over $ 1,770 amid recent pullbacks on the greenback. The US Treasury yields dipped a bit to trade at 1.57% with a loss of 0.57%, weighing on the dollar. The lower value of the USD enhances the attractiveness of the precious metal for other investors to preserve the purchasing power of the currency.

Gold consolidates its recent loss trading near the close of Friday’s $ 1,760.00/troy ounce price region. XAU/USD traded at 1,760.25 this Monday, as the dollar has garnered similar attention in the wake of widespread disappointing market sentiment. China’s shocking growth-related figures released earlier in the day undermined the sentiment, as the world’s second-largest economy grew at a much slower pace than expected in the third quarter of the year.

The quarterly Gross Domestic Product printed at 0.2%, while annual readings led to 4.9%, both of which also missed market expectations. In addition, the country reported a slowdown in Industrial Production figures in September, although retailer sales were optimistic.


Demand for the U.S. dollar has shrunk before Wall Street opened, helping gold to rise again to mark the daily high at 1,771.82. With improved sentiment in the market, gold suffered again against the high yielding equities. Most Asian and European indexes were closed in red, but Wall Street was up, even in the face of disappointing US macroeconomic data.

The US government bond yields remained somewhat neutral. The 10 year US Treasury note yield reached 1.627%, which temporarily increased the greenback, although it quickly traced back to sub-1.60%. In general, yields is likely to lead the way for the greenback this week.

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