PT Rifan Financindo Berjangka – Gold Price Eased as Traders Await for US Data, Heightened US Yields
Gold traded slightly below its opening price at the beginning of the week and is down by 0.15%, weighed down by rising US Treasury yields. Market players prepare for a busy economic docket in the United States (US), as the data will be crucial with investors looking for cues for the Federal Reserve’s (Fed) monetary policy path.
The XAU/USD trades at $2,742 after hitting a daily high of $2,747. The yield on the US 10-year Treasury note continued to climb, up by three basis points at 4.272%. This has kept Bullion prices from recording a new all-time high above $2,758 as some analysts eye the $2,800 mark toward the end of the year.
Meanwhile, traders are also eyeing the November 5 US election. According to polling site FiveThirtyEight, Trump’s chances of winning the US election have increased to 52% compared to 48% for Vice President Kamala Harris. Despite this, the Democratic nominee still holds a slight lead in most national polls.
Traders are also awaiting a busy economic schedule, which will feature a tranche of job data: JOLTS, ADP Employment Change, Initial Jobless Claims, and Nonfarm Payrolls.
Other data will be revealed like the Gross Domestic Product (GDP) for the third quarter of 2024, the ISM Manufacturing PMI, and the Fed’s preferred inflation gauge — the Personal Consumption Expenditures (PCE) Price Index.
Aside from this, geopolitics came back to the fore over the weekend after Israel launched missiles at several military targets in Iran, avoiding energy and nuclear facilities.
It’s worth noting that Fed officials are in blackout mode as they prepare for the November 7-8 meeting. They will break that period once Chair Jerome Powell speaks at his press conference.
Source : Fxstreet
Gold falls after decline in Chinese jewelry buying
Gold (XAU/USD) falls over half a percent to trade in the $2,730s on Monday but remains within the confines of the previous week’s mini range. The precious metal loses ground on reports that demand from China, its largest market, is softening.
The precious metal, however, remains underpinned by safe-haven flows due to the ongoing conflict in the Middle East, which intensified over the weekend with Israel’s bombing of Iran, although the effect was offset by the decision only to target military installations and crucially not Oil and nuclear facilities.
Gold gains a further boost from increasing uncertainty over the outcome of the US presidential election and the overall downtrend in interest rates globally, which, given it is non-interest paying, enhances the yellow metal’s attractiveness to investors vis-a-vis other assets.
Gold drops after report shows softening Chinese demand
Gold edges lower on Monday after data released by the China Gold Association (CGA) showed a fall in demand from the world’s largest Gold consumer in the first three quarters of 2024, compared to the same period a year ago.
Total consumption was 742 tons between January and September, which is 11.18% lower than the same period last year.
Consumption of Gold jewelry in China fell by 27.53%, to 400 tons when compared to the same period in 2023, the CGA reported.
Demand for Gold bars and coins, however, increased 27.14%, to 283 tons compared to 2023. Gold used in industrial processes, meanwhile, reached 59 tons, a decrease of 2.78%.
The high price of Gold was given as the main reason for the fall in demand, “In the first three quarters, the price of Gold continued to rise, and the consumption of Gold jewelry was significantly affected,” the report says.
Trading on the Shanghai Gold Exchange, however, increased by 47.49% to 46,500 tons (23,200 tons on one side), due to traders participating in the rally. Interest in ETFs also increased. PT Rifan Financindo Berjangka.
Source: FXstreet