Gold price remains firmer despite the latest retreat as the softer United States statistics weigh on the US Treasury bond yields and the US Dollar. That said, US Dollar Index (DXY) fades the previous day’s bounce off a two-month low as it retreats to 101.82 by the press time.
Among the key negatives for the bond coupons and the greenback, which in turn propel the Gold price, are the employment numbers, as well as the latest activity data.
After a disappointing 19-month low of the US JOLTS Job Openings for February, the ADP Employment Change for March dropped to 145K from 200K expected and an upwardly revised prior of 261K. On the same line, the final readings of S&P Global Composite and Services PMIs for March also came in downbeat as the former one declined to 52.3 from 53.3 preliminary estimations while the Services PMI dropped to 52.6 from 53.8 anticipated earlier. More importantly, the US ISM Services PMI for the said month amplified pessimism as it dropped to 51.2 versus 54.5 expected and 55.1 prior.
It should be noted that the CME’s FedWatch Tool suggests a nearly 57.0% of chance that the US central bank will pause its rate hike trajectory in May, which in turn prod the US Dollar buyers and weigh on the Gold price.
Against this backdrop, S&P 500 Futures print mild losses while tracing the Wall Street benchmarks. However, the yields remain pressured and weigh on the US Dollar. It’s worth noting that the benchmark US 10-year Treasury bond yields dropped in the last five consecutive days to refresh a seven-month low on Wednesday while the two-year counterpart also printed a four-day downtrend before bouncing off 3.79% at the latest.
Hence, multiple catalysts suggest further run-up of the Gold price even as the quote retreats of late.
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