Update: The price of gold in Asia, XAU / USD, remains calm because the opening session takes place while the US dollar remains in the hands of the Bulls while above 98.50, according to the DXY index. Gold trading at $ 1,925 and flat on the day so far after starting lower at $ 1,921.48.
The dollar made the company starting the following week after the nonfarm salary data mixed last Friday and because the treasury results rose in the expectations of the Hawkish federal reserve and the next US interest rate hike. In addition, there has been talks about the prohibition of Russian gas which has retained the euro in the lowest view of 2022 According to Reuters, ” The German Defense Minister said on Sunday that the European Union must discuss ban Russian gas imports, which can drag more about growth and currency after Ukrainian and European officials accused Russian’s atrocities. “
Final Update
At $ 1,924.27 was low in the open, the price of gold began at the foot behind on Monday in Asia open. The yellow metal ended on Friday fell by around 0.62% at $ 1,925 after traveling from a height of $ 1,939.62 to a low of $ 1,918.10. Investors must consider the risk of protracted war in Ukraine and when peace talks drag without success and US recession against the background of the Hawkish at the Federal Reserve. Analysts at TD Securities explained that gold remained at the aim because the Fed price provided a constant dark cloud above the precious metal market. “
“As a safe-haven appetite and a massive ETF inflow gives a strong offset, keeping the price above the CTA liquidation threshold near $ 1830 / ounces, the background barrier Fed Hawkish is increasingly burdening the momentum of the yellow metal. ” On Friday, US nonfarm payroll solid for March. 431,000 jobs added last month, below the estimated 490,000, although the data for February work increased higher. However, the unemployment rate fell to 3.6%, the lowest since February 2020. It has supported the US dollar. As measured by the DXY index, the greenback is higher for the second day in a row after two straight days and trading back near 98.50. This month’s cycle is high near 99,418 in the end it must be tested. The US dollar filed an open place on Monday, now trading at 98.60.
In addition, Reuters reported that futures contracts related to the Fed’s policy rate fell after work reports, referred to the hope that the Fed would climb with a half percentage point in each of the next three meetings to handle a firmer blow to handle price pressure. “It will take a quarter point rise on March 16, when The Fed started a new tightening cycle. ” Nonetheless, regardless of the strength in the greenback, analysts at TD Securities argue that ” as long as the progress of material in the talks of the ceasefire and de-escalation remains difficult to understand, the flow of heaven tends to keep the yellow metal supported. “
According to speculation of US recession, analysts say, at the same time, ” 2y-10y curve teasing with inversion has triggered talks about recession on the horizon, offering other positive dynamics for the gold market. With that, while geopolitical tensions and signals the results of the results curve re-lit investor interest in gold, the risk of decline is preferred in the middle of the background of the Fed Hawkish and when negotiators continue to work towards a ceasefire. ”
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