- Gold price gains momentum above $1,980 despite higher US yields.
- US New Home Sales for September increased to 759,000 MoM, above the market expectation.
- Rising geopolitical tension in the Middle East might boost safe-haven assets like gold price.
- Traders await the US growth numbers for Q3, which is expected to show a 4.2% expansion.
Gold price (XAU/USD) extends its upside during the early Asian trading hours on Thursday. Despite higher US Treasury bond yields, the precious metal gains momentum on the risk aversion. At the press time, gold price is adding 0.21% on the day to trade at $1,983.
Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, surges to 106.55, the highest since last Friday. The US Treasury bond yields also edges higher on Thursday, with the 10-Y US Treasury yield climbing to 4.95%. This, in turn, might cap the upside of the non-yielding yellow metal.
The recent US economic data showed the US economy is gaining traction. The US New Home Sales for September increased to 759,000 MoM, above the market expectation of 680,000. On Tuesday, the US PMI data came in better than estimated. The flash Composite PMI for October climbed to 51.0 from 50.2. While, Manufacturing PMI surged to 50 and the Services PMI rose to 50.9, above the consensus.
Nonetheless, the rising geopolitical tension in the Middle East might boost safe-haven assets like gold price. Israel Prime Minister Benjamin Netanyahu stated on Wednesday that Israel is preparing a ground invasion of Gaza, but he declined to provide any specifics on the timing or other details regarding the operation.
Gold traders will closely monitor the preliminary estimate of the US Q3 Gross Domestic Product (GDP) on Thursday, which is expected to show a 4.2% expansion. Additionally, the weekly US Jobless Claims, and Durable Goods Orders will be released. On Friday, the US Core Personal Consumption Expenditure Index (PCE) will be due. Traders will take cues from these data and find trading opportunities around gold price (XAU/USD).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.