Abstract:Gold trading inside the previous day’s range - investors wait for US PMI
Gold price (XAU/USD) is displaying volatility contraction as investors are awaiting the release of the US Purchase Managers Index (PMI) data, which is due in the New York session.
On an hourly scale, XAUUSD prices have displayed a failed attempt to continue the downward trendline placed from the June 16 high at $1,857.58.
The precious metal is trading inside the previous days range, in the boundary of $1,823.45-1,847.93. Dictating that the market participants are awaiting a potential trigger for a decisive move.
On the economic data front, the market participants are expecting a mixed performance from the PMI figures. The Manufacturing PMI is expected to slip to 56 from the prior print of 57. While the Services PMI may advance marginally to 53.5 from the former figure of 53.4.
Gold on the front foot this week- consolidates ahead of ECB meeting, US inflation data
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Gold advances firmly, as US-10 year T-bond yields drop ten basis points, down to 1.43%. Risk-off market sentiment boosted the prospects of the XAU/USD, as the COVID-19 omicron variant threatens to derail the economic growth. XAU/USD Technical outlook: A break above $1,807 would expose $1,815, followed by $1,834.
Gold bounced back from two days of losses to close at its highest levels since June, once again thumping naysayers skeptical that the yellow metal could be on the cusp of recapturing the $1.900 level sought by bullion bulls.