The value of the gold metal had fallen to its lowest point since the end of June after the data on Tuesday.
On Wednesday, the gold price experiences an increase driven by the dollar depreciation and the decrease in the yields of the Treasury bond US. This recovery occurred after in the previous session gold to fall below the critical level of $1,900due to the solid economic indicators of the United States.
Market participants also hold your attention to the minutes of the monetary policy meeting July from the Federal Reserve, seeking more information on interest rate strategy. In addition, they are awaiting data on US home construction and industrial production, which will be released later in the day.
In that sense, gold in cash showed an advance of 0.2%standing at US$1,905.25 per ounce, while gold futures in the United States register an increase of 0.1%, reaching US$1,936.60.
According to peter fertiganalyst of Quantitative Commodity Researchthe ingot has found support short term in weakness of the dollarat the same time as the pound sterling strengthened by strong UK core inflation in July.
Goldby not generating interest and trading in dollars, it was also gaining an advantage due to declining 10-year bond yieldswhich fell back from their 10-month highs.
Yeap Jun Rongfrom IG, commented: “So far, economic data from the United States have left room for interest rates to stay high for an extended period. Yesterday’s US retail sales data have offset fears of a recession and could limit flows into safe haven assets.”
The value of the gold metal had fallen to its lowest point since the end of June after the data on Tuesday.
Regarding other precious metals, silver operates with an increase of 0.8%, reaching US$22.70 per ounce; platinum shows a slight increase of 0.1%, settling at US$888.83; while palladium presents a decrease of 0.25%, reaching US$1,231.99.
Source: Ambito
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