Gold price may be limited this morning without much correction. The main reason is that the USD and bond yields are still high.
The Dollar-Index - measuring the strength of the USD in the Basket of 6 major currencies increased by more than 0.02% compared to the previous session, up 103.390 points, at 8:30 am this morning (Hanoi time). 10-year US government bond yield increased by 0.65% to 4.28%/year at 8:35 am (Hanoi time).
Experts said that the gold price is unlikely to rise again when the yielding assets such as bonds and the dollar are rising strongly. Investors are switching from gold as cash flow assets to profitable investments. Gold could continue to come under pressure as investment demand declines, only in the event of an extraordinary event, or the dollar weakens as the US Federal Reserve shifts its focus to interest rate cuts.
The Dollar-Index - measuring the strength of the USD in the Basket of 6 major currencies increased by more than 0.02% compared to the previous session, up 103.390 points, at 8:30 am this morning (Hanoi time). 10-year US government bond yield increased by 0.65% to 4.28%/year at 8:35 am (Hanoi time).
Experts said that the gold price is unlikely to rise again when the yielding assets such as bonds and the dollar are rising strongly. Investors are switching from gold as cash flow assets to profitable investments. Gold could continue to come under pressure as investment demand declines, only in the event of an extraordinary event, or the dollar weakens as the US Federal Reserve shifts its focus to interest rate cuts.
