
Gold on precious metal futures prices had rekindled some of its safe-haven appeal on Tuesday after US Treasury bond yields fell sharply alongside a decline in the US Dollar Index (DXY) more early in the day, as a radical dip in service The activities of the sectors last month, cited by a survey by the Tempe-based Institute of Supply Management (ISM), had taken a heavy toll on the morale of stakeholders in the market awaiting the minutes of the last US Fed policy meeting scheduled for Wednesday..
In fact, currency and equity traders remained extremely cautious on Tuesday, as the minutes of the US Federal Reserve’s latest policy meeting are expected to provide new clues to a plausible start to tapering talks alongside a rise in prices. rate..
On top of that, in recent weeks a number of Fed policymakers, including James Bullard alongside US Treasury Yellen, have made hawkish remarks about a likely rate hike as well as a decrease in budget support in the middle. dazzling inflationary pressure, deteriorating the attractiveness of bullion as a safe haven..
Nonetheless, weaker-than-expected ISM services data, coupled with heightened investor cautiousness ahead of Wednesday’s FOMC minutes, had plunged US Treasury yields to a two-week low, with Treasury bonds falling. 10 years oscillating at 1.37%. , well below a 14-month peak of 1.74% reached a few months earlier, while the US dollar index (DXY) rose 0.33% to 92.54 following a late surge black session.
Earlier today, data from the Institute of Supply Management (ISM) revealed that the ISM index for the US non-manufacturing PMI (purchasing managers’ index) fell to 60.1 on the month. latest after an all-time high of 64.0 in May, highlighting prolonged weakness in the labor market and shortage of raw materials.
Gold gains as US Treasuries fall
Citing statistics, during the day’s commodity market sell-off, spot gold gained 0.2% to $ 1,794.37 an ounce after hitting a high of $ 1,814.78 an ounce, because a psychological grip of $ 1,800 seems to blow up the bullion game after breaking. a technical barrier of $ 1,790 per ounce on a 200-day moving average, while US gold futures prices gained 0.6% to $ 1,794.2 per ounce.
Among other precious metals, silver futures prices fell 1.3% to $ 26.10 after hitting a three-week high of $ 26.76 an ounce earlier in the day, while platinum and palladium contracts lost 1.1% and 0.6% respectively to $ 1,085.53. and $ 2,797.74 per ounce.
Meanwhile, the addition of major central banks around the world had ended the concept of hawkish monetary policy while helping the bullion causes, said ThinkMarkets analyst Fawad Razaqzada, “What we have seen in recent days is that central banks reject the idea of ââraising interest rates prematurely.
Investors are realizing that monetary policy will historically remain very loose and this is one of the reasons we are seeing lower bond yields, which is helping to stabilize gold prices after the sharp drop in June. . ”