- Gold price halts a losing streak due to correction in the US Dollar.
- Greenback extends losses after weaker-than-expected US employment data.
- Higher US Treasury yields beat the non-yielding assets like Gold.
Gold price snaps the losing streak that began on September 25, trading around $1,830 per troy ounce during the early Asian trading session on Thursday. However, the prices of Gold could face challenges due to market caution regarding the US Federal Reserve's (Fed) interest rate trajectory.
The market sentiment leans towards lower year-end forecasts for spot Gold prices, driven by still-high expectations of higher-for-longer rates from the US Federal Reserve (Fed).
The US Dollar Index (DXY) pulls back from an 11-month high after weaker US employment data on Wednesday, which might lower US Treasury yields. The DXY beats lower around 106.60 at the time of writing.
However, the initial bond sell-off pushed US yields to levels not witnessed in years, followed by a rebound. The 10-year US Treasury yield has corrected from 4.88%, reached on Wednesday, the highest since 2007. Investors will closely monitor the bond market, recognizing its pivotal role in driving financial markets.
US ISM Services PMI declined from 54.5 to 53.6 in September, in line with expectations. The ADP Employment Change for September rose by 89,000, falling short of the market consensus of 153,000 and marking the lowest level since January 2021.
Gold Traders are likely on the lookout for the upcoming Jobless Claims and Nonfarm Payrolls on Friday. Positive figures could spur further USD gains and elevate volatility in the bond market.
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