The overnight goodish pickup in the US Treasury bond yields helped the USD to stall its recent corrective fall from a nine-and-half-month top.
The global risk sentiment got a lift after China said that it had stopped the community spread of COVID-19, which restored confidence in the country’s growth dynamics for the rest of the year.
Powell’s remarks will be scrutinized for clues about the likely timing of the Fed’s tapering plan, which will play a key role in driving the greenback in the near term.
Although risk-on mood favored gold earlier during the previous day, mixed US data and cautious sentiment ahead of the week’s key releases dragged the metal from a three-week top the previous day.
Softer US Richmond Fed Manufacturing Index data for August, 9 versus 25 expected, joins the first rise in the New Home Sales in four months to push back the Fed’s tapering concerns as policymakers brace for Jackson Hole Symposium.
However, multi-day top of the US covid infections and a record high of daily virus cases in Australia, not to forget fading vaccine optimism, weigh on the market sentiment and heavy the gold prices.
Amid these plays, the US 10-year Treasury yields stay firmer around 1.30% after rising the most in two weeks the previous day, underpinning the USD strength.
Given the recently release mixed data from the US, gold bears look to the US Durable Goods Orders for July, forecast -0.3% versus +0.9% prior, for further firming up controls.
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