- Gold price has shown a V-shape sell-off around $1,930.00 amid a recovery in the USD Index.
- US weekly jobless claims have landed at 264K, similar to their prior release but higher than expectations of 260K.
- Gold price is looking to deliver a break below the Descending Triangle chart pattern.
Gold price (XAU/USD) has retreated after a solid recovery to near $1,930.00 in the early New York session. The precious metal has faced selling pressure despite the weekly jobless claims for the week ending June 16 have landed marginally higher than expectations. The US Department of Labor has reported that first-time jobless claims were 264K, similar to their prior release while the street was anticipating a figure of 260K.
S&P500 futures have recovered some losses, however, a weak opening is broadly expected. Investors have underpinned the risk-aversion theme as more rate hikes by the Federal Reserve (Fed) could accelerate fears of a recession in the United States.
Jobless claims have remained higher than expectations straight for the fourth time in a row. Higher jobless claims indicate that labor market conditions are critically losing their appeal. Easing US labor market conditions could propel the chances of only one interest rate hike by year-end.
The US Dollar Index (DXY) has rebounded to near day’s high around 102.16 as investors are providing more value to hawkish testimony by Fed chair Jerome Powell against dovish commentary by Atlanta Fed President Raphael Bostic and Chicago Fed Bank President Austan Goolsbee. The 10-year US Treasury yields have climbed above 3.75%.
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