- Gold purchasers reassert dominance as risk aversion gains traction throughout global financial arenas.
- The US Dollar and Treasury returns decline as market participants anticipate more substantial Federal Reserve rate reductions.
- Market participants prepare for a pivotal week of US economic releases, including GDP, Core PCE, and Non-Farm Payrolls.
The price of gold is once again trending upward on Monday, recovering from previous declines that brought the commodity to a daily low of $3,268. A change in overall market sentiment has bolstered confidence among gold investors, pushing XAU/USD higher by 0.55%, with the pair trading at $3,338.
Appetite for risk diminished as Wall Street surrendered earlier advances amid trader anxiety regarding international trade tensions. Investors are also keenly awaiting the upcoming week of earnings reports from major technology firms, including Microsoft, Apple, Meta, and Amazon. As investors looked for secure investments, they favored gold over the US dollar.
Consequently, the US Dollar Index (DXY), which measures the value of the US dollar relative to a group of six major currencies, decreased by 0.36% to 99.22. US Treasury yields are also decreasing, signaling growing concerns among market participants about a potential US economic downturn, fueled by expectations of 91 basis points of monetary easing by the Federal Reserve (Fed), according to data from the Prime Market Terminal.
