XAU/USD Lurching Lower as USD Gains and Gold Slips


Gold price has continued to descend due to the direction of last week’s Jackson Hole symposium which continues to be felt across asset classes.

Fed Chair, Jerome Powell stated that inflation combating is the current priority of the Fed at this moment and till it successfully fights it off. He said, “The Federal Open Market Committee’s (FOMC) overarching focus right now is to bring inflation back down to our 2 percent goal.”

Certainly, this has been the norm for a while now, but after the July FOMC, the market seemed to have misinterpreted Powell’s speech as they thought he said that the Fed’s target rate was neutral.

Fed’s interest rates is always increasing per time causing Treasury yields to scale high across the curve as the USD finds support. This surge in the USD has causes commodities to fall pressured and the market sees a potentially slower global growth. Gold is not left unaffected in all of these.

After Jackson Hole, 10-year Treasury yields are around 20 basis-points (bps) higher, while the market lowered their expectation of where 10-year inflation is. It has downed by around 10 bps, as priced by the breakeven rate on Treasury Inflation Protected Securities (TIPS).

The nominal Treasury yield is lesser than the inflation rate for the same tenor. The US 10-year real yield is 30 bps above its position before Jackson Hole.

If the Fed continue to talk tough on inflation, will XAU/USD test new lows?

This Post Has 35 Comments

  1. I’m really enjoying the theme/design of your blog. Do you ever run into any internet browser compatibility issues? A number of my blog visitors have complained about my site not working correctly in Explorer but looks great in Firefox. Do you have any recommendations to help fix this issue?

  2. java burn

    What is Java Burn? Java Burn is a unique and innovative product that enhances your morning coffee routine.

  3. Kerassentials

    I see something really interesting about your site so I saved to favorites.

  4. Java Burn

    Sweet web site, super pattern, really clean and employ pleasant.

  5. Fitpsresso

    Hello.This article was extremely remarkable, especially because I was looking for thoughts on this issue last week.

  6. Sugar Defender

    Heya! I just wanted to ask if you ever have any trouble with hackers? My last blog (wordpress) was hacked and I ended up losing a few months of hard work due to no backup. Do you have any methods to stop hackers?

  7. The Genius Wave

    Hi there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thank you for sharing!

  8. Java Burn

    I am glad to be a visitant of this complete web blog! , appreciate it for this rare information! .

  9. I believe other website proprietors should take this website as an model, very clean and fantastic user pleasant style.

  10. Lift Detox

    I like this website its a master peace ! Glad I detected this on google .

  11. My brother suggested I might like this blog. He was totally right. This post actually made my day. You can not imagine simply how much time I had spent for this information! Thanks!

  12. Fitspresso review

    I really like your writing style, good information, thanks for putting up :D. “I hate mankind, for I think myself one of the best of them, and I know how bad I am.” by Joseph Baretti.

  13. I know this if off topic but I’m looking into starting my own weblog and was curious what all is required to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100 sure. Any tips or advice would be greatly appreciated. Many thanks

  14. Java Burn

    You made some good points there. I did a search on the topic and found most people will approve with your site.

  15. Billionaire Brain Wave

    I have been surfing online more than three hours these days, yet I never discovered any fascinating article like yours. It is beautiful value enough for me. Personally, if all web owners and bloggers made excellent content as you did, the net can be a lot more useful than ever before.

  16. Balmorex Pro

    I discovered your blog site on google and check a few of your early posts. Continue to keep up the very good operate. I just additional up your RSS feed to my MSN News Reader. Seeking forward to reading more from you later on!…

  17. I carry on listening to the news broadcast talk about getting boundless online grant applications so I have been looking around for the top site to get one. Could you advise me please, where could i find some?

  18. Can I just say what a aid to find somebody who actually is aware of what theyre talking about on the internet. You positively know how to carry an issue to gentle and make it important. More people need to read this and perceive this facet of the story. I cant consider youre not more widespread because you definitely have the gift.

  19. Java Burn

    Very interesting information!Perfect just what I was looking for! “Energy is the power that drives every human being. It is not lost by exertion by maintained by it.” by Germaine Greer.

  20. hire a hacker uk

    It’s really a nice and useful piece of info. I’m glad that you shared this helpful info with us. Please keep us informed like this. Thanks for sharing.

  21. Boostaro review

    Thanks for another informative website. Where else could I get that kind of information written in such an ideal way? I have a project that I am just now working on, and I have been on the look out for such information.

  22. Rastrear Celular

    A tecnologia está se desenvolvendo cada vez mais rápido, e os telefones celulares estão mudando cada vez com mais frequência. Como um telefone Android rápido e de baixo custo pode se tornar uma câmera acessível remotamente?

  23. Rastrear Celular

    Existe alguma maneira de recuperar o histórico de chamadas excluídas? Aqueles que possuem backup na nuvem podem usar esses arquivos de backup para restaurar registros de chamadas de celular.

  24. Rastrear Celular

    Rastreador de celular – Aplicativo de rastreamento oculto que registra localização, SMS, áudio de chamadas, WhatsApp, Facebook, foto, câmera, atividade de internet. Melhor para controle dos pais e monitoramento de funcionários. Rastrear Telefone Celular Grátis – Programa de Monitoramento Online.

  25. Natalia

    Wow, wonderful blog format! How lengthy have you ever been running a
    blog for? you made blogging look easy. The overall glance
    of your site is excellent, let alone the content!
    You can see similar here sklep internetowy

  26. zlatne plocice

    Hi, Neat post. There is a problem with your website in internet explorer, would check this… IE still is the market leader and a big portion of people will miss your great writing due to this problem.

  27. google maps seo

    I’d must examine with you here. Which is not something I usually do! I get pleasure from reading a publish that will make people think. Additionally, thanks for allowing me to comment!

  28. zlatne poluge

    I don’t commonly comment but I gotta tell appreciate it for the post on this perfect one : D.

  29. investiciono zlato

    My spouse and i got very thankful that Michael managed to carry out his web research using the ideas he grabbed when using the web page. It is now and again perplexing to simply continually be offering key points which usually men and women might have been trying to sell. And now we understand we now have the website owner to be grateful to for that. The illustrations you’ve made, the straightforward site navigation, the friendships your site make it easier to create – it’s got everything fantastic, and it’s really facilitating our son in addition to the family understand the concept is fun, and that is unbelievably serious. Thanks for the whole lot!

  30. tlovertonet

    We’re a group of volunteers and starting a new scheme in our community. Your website offered us with valuable info to work on. You’ve done an impressive job and our whole community will be thankful to you.

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


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.