· Gold is down 0.3% to around $1,740 currently
The low earlier hit $1,735.60 but gold is holding around a key short-term technical level around $1,740 currently on the session.
The post-Fed knee-jerk reaction saw gold jump above the short-term resistance around $1,740 but buyers never really got to trying to push towards $1,760 and the momentum may be starting to fizzle out now that Treasury yields are surging higher.
· “There was a risk-on response (after the Fed announcement) and the dollar weakened significantly.
One might expect dollar negativity to be supportive for gold. That wasn’t what happened, the main logic there really had to do with yields, which were on the march higher,” said DailyFX currency strategist Ilya Spivak.
“They are getting more optimistic and that doesn’t bode well for gold and suggests that the trend lower is likely to continue. It didn’t get a huge decline because the dollar was weaker.”
· “If the dollar continues its weakening track and yields continue to be calmed by Fed language, then this can set gold up for a test of $1,800,” said Nicholas Frappell, global general manager at ABC Bullion.
· Gold Declines as Treasury Yields Push Higher After Fed Meeting
Gold declined as Treasury yields reached their highest since January 2020, continuing their climb after being briefly held back by the Federal Reserve’s dovish words.
· Spot gold declined 0.7% to $1,733.65 an ounce by 8:47 a.m. in London, after advancing 0.8% on Wednesday.
· Silver and platinum fell while palladium gained. The Bloomberg Dollar Spot Index rose 0.3% after declining 0.5% on Wednesday.
Reference: DailyFX, Moneyweb
Thai
Eng