Gold stays pressured near weekly/monthly low, extends Friday’s losses.
US dollar benefits from safe-haven bids before FOMC, Treasury yields consolidate latest losses.
Off in Australia, China and a light-weight calendar limits fresh catalysts needed for bounce, G7 updates battle stimulus hopes.
US Retail Sales may offer intermediate direction before FOMC.
Gold (XAU/USD) licks its wounds around $1,864, following the drop to weekly/monthly low surrounding $1,860, before Monday’s European session. In doing so, the gold sellers cheer Friday’s downside break of the key support also as firmer US dollar.
The US dollar index (DXY) prints 0.07% gains, up for the second consecutive day, as market players seek solace within the greenback amid fears of the Fed’s tapering.
The indecision over Wednesday’s Federal Open Market Committee (FOMC) magnified following another upbeat US data, namely Michigan Consumer Sentiment Index. However, softer print of the inflation component allows the Fed policymakers to stay their defense to easy money policies.
Also on an equivalent line might be the mixed releases of the newest US employment data and chatters over the availability crunch portraying a short-term challenge to the worth pressure. It’s worth mentioning that a one-month low of the US inflation expectations, per 10-year breakeven rate of inflation data from the St. Louis Federal Reserve System (FRED), also favors the doves at the Fed.