Gold Takes Cues From US Equity Indexes Despite USD’s Whims

Gold

Another dose of hawkish comments from Fed speakers has sent markets cautious, including the bullion markets.

Gold prices fell around 0.5% on yesterday, putting its initial rally, which started last week, on hold and taking the yellow metal nearly 6% higher after touching the lowest levels since April 2020.

Bulls have benefited from the different market sentiment direction, seeing traders pile into equities as they ditch the infamous US Dollar. Bond traders have also helped to drag yields lower, increasing the tailwind for the non-interest-bearing asset.

Despite a valiant intraday effort, US equity indexes ended the day with losses. The benchmark S&P 500 index closed 0.2% lower, while the Nasdaq-100 Index posted a 0.08% loss. Were it not for the increase in crude oil prices that boosted the energy sector, the selloff of the indexes would have been much more pronounced. The S&P 500 GICS energy sector gained 2.08%. Eight of the index’s eleven sectors were negative.

Gold prices currently have a healthy relationship with US equity indexes, which are largely at the whims of Federal Reserve rate hike bets. XAU traders might take their cues from the S&P 500. Asia-Pacific stocks, excluding China, are bucking the overnight bearish trend. That is giving XAU a small lift as prices trade just above 1720.

Equity markets may not have much steam left. Overnight index swaps appear to be more generous, pricing in a small chance for a cut by next March.

The US non-farm payrolls report due out Friday can sway market sentiments towards the USD. Fed speakers Mester and Kashkari are scheduled to speak on Thursday. The market might be volatile next 48 hours for every financial instrument, including gold prices.

This Post Has 10 Comments

  1. business

    Hello there! Do you know if they make any plugins to help with Search Engine Optimization?
    I’m trying to get my blog to rank for some targeted keywords
    but I’m not seeing very good gains. If you know of any please share.

    Cheers! I saw similar art here

  2. link building

    I have read so many articles about the blogger lovers but this
    paragraph is truly a fastidious paragraph, keep it up.

  3. Arletta

    I’ve been browsing on-line more than 3 hours today, but I by no means found any interesting article like yours. It is lovely value sufficient for me. Personally, if all website owners and bloggers made good content material as you probably did, the internet will be much more useful than ever before!

  4. Azalee

    I’ll right away seize your rss as I can’t to find your e-mail subscription link or newsletter service. Do you have any? Please let me recognize in order that I may just subscribe. Thanks!

  5. Good escape room

    Hello there! Do you know if they make any plugins to help with SEO?
    I’m trying to get my site to rank for some targeted keywords but I’m not seeing very good success.
    If you know of any please share. Appreciate it!
    You can read similar text here: Escape rooms review

  6. sklep internetowy

    Wow, incredible blog format! How lengthy have you
    ever been running a blog for? you make running a blog glance easy.
    The entire glance of your site is wonderful, as smartly
    as the content material! You can see similar here dobry sklep

  7. hitman.agency

    Hello there! Do you know if they make any plugins to help
    with Search Engine Optimization? I’m trying to
    get my site to rank for some targeted keywords but I’m not seeing very good success.

    If you know of any please share. Thanks! You can read
    similar text here: Scrapebox AA List

  8. sklep internetowy

    Wow, incredible weblog structure! How long have you ever been blogging for?
    you made running a blog glance easy. The overall look of your web site is excellent, let alone the content material!
    You can see similar here e-commerce

  9. gate io deposit

    Reading your article helped me a lot and I agree with you. But I still have some doubts, can you clarify for me? I’ll keep an eye out for your answers.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.