Gold Price Forecast: XAU/USD bulls bounce back to life as US dollar gets slammed – by fx_ross Gold Commodities DollarIndex Fed Currencies
The jump in the gold price came about when the US dollar fell sharply from a 20-year high, easing pressure on gold in what has been described a month-end fixing model. There are still plenty of fundamentally sound reasons for a recovery in gold as it is seen as aat times of geopolitical tensions. Additionally, the US treasury yield also fell after climbing to the highest since January 2008. The yield on the US 10-year note was last seen down 24.2 basis points to 3.705%, after earlier touching 4.
However, in recent trade on Wednesday, US traders piled into the stock market as the yield on US Treasuries came off decade highs that in recent sessions made interest rate-sensitive companies less attractive to investors.
In turn, the greenback has crumbled from a fresh 20-year high scored ahead of the New York open at 114.778 before falling to the current low of 112.561. The move has dug into a lot of long positioning into other currencies vs. the US dollar this week which has led to a cascade of market orders being triggered along the way, propelling gold and the pound higher.
''While this policy is under the umbrella of financial stability, it effectively amounts to undertaking temporary quantitative easing , at a time when the
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