- Gold prices remain underpinned by lower US Treasury yields and a softer US Dollar. The US 10-year Treasury note is yielding 4.481%, down three and a half basis points (bps) from its opening level. The US Dollar Index (DXY), which tracks the Greenback’s performance against six other currencies, edged down 0.02% to 105.05.
- Last Friday, April’s US NFP missed estimates and trailed March’s figures. That alongside the Institute for Supply Management (ISM) PMIs in the manufacturing and services sectors entering contractionary territory might undermine the US Dollar, a tailwind for the golden metal.
- Gold advancing more than 12% so far in 2024 is courtesy of expectations that major central banks would begin to reduce rates. Coupled with renewed fears that the Middle East conflict could resume between Israel and Hamas can sponsor a leg up in XAU/USD prices.
- Israel's military has instructed civilians to evacuate certain areas of Rafah, indicating a potential impending offensive in the Gazan city. This directive follows unsuccessful cease-fire negotiations in Cairo between Hamas and Israel. A key issue in these talks was Hamas's demand for a permanent truce.
- After the data release, Fed rate cut probabilities increased with traders expecting 38 basis points of rate cuts toward the end of the year.
- Fed’s first rate cut is expected in September with odds standing at 90% for a 0.25% rate cut. The chances for another quarter point rate cut in December 2024 stands at 79%. This means the fed funds rate would finish the year at the 4.75%-5.00% range.
风险提示：本文所述仅代表作者个人观点，不代表 Followme 的官方立场。Followme 不对内容的准确性、完整性或可靠性作出任何保证，对于基于该内容所采取的任何行为，不承担任何责任，除非另有书面明确说明。
喜欢的话，赞赏支持一下
暂无评论。 来发表第一条观点吧。