Gold price holds lower ground after reversing from one-week high, snaps three-day winning streak.
US Treasury bond yields refresh multi-month highs amid inflation, rate hike fears.
China-linked optimism fades ahead of G20; US data, Fed talks also weigh on sentiment and XAU/USD price.
Gold price (XAU/USD) seesaws around the intraday low of $1,831 during the first loss-making day in four heading into the European session. In doing so, the precious metal justifies the firmer US Dollar and risk-off mood in the market amid a sluggish Thursday.
US Dollar Index (DXY) bounces off a one-week low to 104.60 at the latest, up 0.17% intraday as the greenback bulls trace strong US Treasury bond yields, as well as cheer the sour sentiment amid hawkish Federal Reserve (Fed) talks.
That said, the US 10-year Treasury bond yields rose to the highest levels since early November 2022 by piercing the 4.0% mark whereas the two-year counterpart rallied to the highest levels since June 2007 by flashing the 4.91% mark at the latest. The jump in the US Treasury bond yields portrays the market’s fears, which in turn probed bulls on Wall Street and weigh on S&P 500 Futures as of late.
While tracing the key catalysts upbeat details of the US ISM Manufacturing PMI for February and headlines from the New York Times (NYT) suggesting the US-China likely tension the Group of 20 (G20) meeting seems to gain major attention. On the same line could be the hawkish Minneapolis Federal Reserve (Fed) President Neel Kashkari, as well as the policymakers of the Bank of England (BoE) and the European Central Bank (ECB).
On the contrary, the recent pick-up in China activity data and upbeat comments from the policymakers of the dragon nation keeps the Gold buyers hopeful. Recently, China’s Human Resource Minister said, “China's employment will continue to improve this year, and remains stable overall.” On Wednesday, China Finance Minister Liu He showed readiness to bolster the nation’s fiscal spending while also mentioning that the foundation of China's economic recovery is still not stable.
Moving on, updates from the G20 could join central bankers’ comments and the second-tier data from the US to entertain the XAU/USD traders.
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