Gold price declined below $1,900 for the first time in five months, pressured by concerns over an economic slowdown in China and rising US Treasury bo
nd yields. Comments from central bankers at the Jackson Hole Symposium next week could help investors decide whether it’s time for XAU/USD to stage a decisive rebound after sliding for three consecutive weeks.After warning of a $7.
The cautious market stance helped the USD to hold its ground and didn’t allow XAU/USD to stage an upward correction mid-week. Minutes of the Federal Reserve’s July meeting showed that most policymakers saw "significant" upside risks to inflation and agreed that those risks could require further tightening of the monetary policy. The benchmark 10-year US Treasury bond yield climbed above 4.
Markets are pricing in a slightly more than 10% probability of a 25 basis points Fed rate hike in September, according to the CME Group FedWatch Tool. The market positioning suggests that USD’s losses are likely to remain limited even if Powell confirms a pause at the next meeting. Investors are still fairly optimistic that there won’t be another rate increase before the end of the year. The odds of the Fed policy rate rising to the range of 5.5%-5.75% from 5.25%-5.5% are about 30%.
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