Gold remains on the rear foot for third consecutive day, refreshes intraday low lately .
Comments from US President Biden, Treasury Secretary Yellen renew US dollar demand.
Quiet session in Asia, pre-data/event cautious sentiment adds downside pressure on gold prices.
US Core PCE price level , stimulus news should be observed for fresh impetus.
Update: Gold price is holding the lower ground near $1890, having tested Thursday’s low of $1888, because the US dollar remains firmer amid higher Treasury yields. Hopes for a bigger-than-expected US stimulus package still keep the worldwide stocks during a sweet spot, with President Joe Biden aiming for $6 trillion in spending plans before the budget release afterward Friday. Gold traders also eagerly await the discharge of the Fed’s preferred inflation gauge, the PCE price level for subsequent direction in prices. Strong US Core PCE inflation figures could reinforce the Fed’s tapering expectations, boosting the yields at the expense of gold.
Read: Gold Price Forecast: XAU/USD at crossroads, US PCE inflation holds the key
Gold (XAU/USD) justifies the double whammy of uncertainty over US inflation and stimulus by printing a three-day streak , down 0.20% intraday around $1,890 before Friday’s European session. Market’s cautious sentiment back the US Treasury yields, which successively weigh down the gold prices by the press time, despite the newest pullback from $1,889.
Test time for Biden, Fedspeak…
US President Joe Biden is prepared to require the bold move of announcing a $6.0 trillion budget despite struggling to pass the $1.7 trillion spending plans, signaled by the ny Times (NYT). In doing so, Biden aims to steer the worldwide economic recovery while staying able to ignore the record budget, a minimum of for now. However, Republicans pour cold water on his face while presenting a $1.00 trillion counteroffer. Hence, Today’s budget announcement, followed by a political drama are going to be entertaining for the markets as Biden’s rejection of the $1.0 trillion offer, also trimming the $6.0 trillion proposal only a touch , could propel risk sentiment and gold prices.