Gold Declines as Dollar and Bond Yields Rise on Strong Economic
Gold ended Wednesday with a decline, driven by a surge in the dollar and bond yields following the release of another economic report surpassing expectations. The December delivery of gold closed down by $8.40, settling at $1,944.20 per ounce.
This dip occurred as both the dollar and bond yields experienced an uptick after the August ISM Services Purchasing Managers Index (PMI) for the United States exceeded the consensus estimate, reaching 54.5, as reported by MarketWatch, indicating growth in the sector.
In response to the report, the ICE dollar index experienced a sharp increase, peaking at 105.2 before retracing slightly. It was last observed up by 0.04 points, at 104.84.
Concurrently, Treasury yields saw an uptick following the PMI release, which is typically unfavorable for gold due to its lack of interest-bearing characteristics. The yield on the US two-year note was last reported at 5.05%, up by 9.2 basis points, while the 10-year note yield increased by 3.9 basis points to 4.298%.
GOLD SELL LIMIT 1921 - 1923 🔽🔽
🟢TP1: 1917
🟢TP2: 1914
🔴SL: 1928
This dip occurred as both the dollar and bond yields experienced an uptick after the August ISM Services Purchasing Managers Index (PMI) for the United States exceeded the consensus estimate, reaching 54.5, as reported by MarketWatch, indicating growth in the sector.
In response to the report, the ICE dollar index experienced a sharp increase, peaking at 105.2 before retracing slightly. It was last observed up by 0.04 points, at 104.84.
Concurrently, Treasury yields saw an uptick following the PMI release, which is typically unfavorable for gold due to its lack of interest-bearing characteristics. The yield on the US two-year note was last reported at 5.05%, up by 9.2 basis points, while the 10-year note yield increased by 3.9 basis points to 4.298%.
GOLD SELL LIMIT 1921 - 1923 🔽🔽🟢TP1: 1917
🟢TP2: 1914
🔴SL: 1928
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