- US Treasury yields advance in thin trading, Wall Street trades mixed.
- The US Dollar is weak amid signs of easing US inflation and growth-related hopes.
- XAU/USD jumped to a fresh three-week high but quickly returned to its comfort zone.
XAU/USD jumped to a fresh three-week high of $1,833.32 a troy ounce following Wall Street’s opening amid a better market mood maintaining market players in risk-on mode. Stocks advanced despite tepid US data, while the greenback rallied despite firmer US Treasury yields.
The bullish momentum of the bright metal faded as the session developed, and it fell back towards the current $1,810 price zone, retaining its long-term upward bias. It is worth adding that volumes are low heading into year-end, with most major pairs and assets holding within familiar levels, despite some short-lived directional spikes.
US Dollar down amid an upbeat mood
Market participants welcome news that US inflation keeps receding, according to the core PCE Price Index released last Friday. Another catalyst for the upbeat mood came from China, as the country is further easing COVID-related restrictions.
Technically, according to FXStreet.com chief analyst Valeria Bednarik, “the daily chart shows that the pair keeps developing above all of its moving averages, with the 20 Simple Moving Average (SMA) extending its advance above the 200 SMA, in line with the dominant bullish trend. Technical indicatorsin the meantime, picked up from around their midlines, offering firmly bullish upward slopes within positive levels.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
