Spot Gold price (Yellow Metal) extended its choppytrend into the second straight session on Thursday, although remained within a familiarrange below the three-month highs of $1890.
As the effect of the FOMC minutes faded, gold climbed back northwards and hit a daily high of $1884. Sellers reclaimed ground and pushed gold price lower towards $1870 in the North American session, as the Wall Street stocks recovered from the crypto crash led broader market sell-off.
Spot Gold: $1900 Support Key is Critical for Bulls
The downturn in gold, however, remained capped by the persistent weakness in the US dollar and the Treasury yields, as markets overlooked the Fed’s tapering jitters amidrisk recovery. Upbeat US Jobless Claims data added to the optimism over a faster economic recovery.
The sentiment around gold price remains underpinned by the continued rise in gold exchange-traded funds inflows and a bearish consolidation in the US dollar alongside yields. Risinginflation expectations also keep the inflation-hedge gold somewhat buoyed. So far this Friday, the risk sentimentremains tepid amid stabilizing crypto markets and renewed covid concerns, which helps gold price to recover towards $1880.
Later in the day, the US Markit Manufacturing and Services PMIs will be closely watched for fresh hints on the economic activity, impacting the market mood and the dollar’s price action.
- Gold price looks north towards $1900 if the key support holds.
- Treasury yields remain depressed, keep the US dollar undermined.
- US Markit PMIs eyed for the next trading impetus.