XAU/USD extends recovery
Updated
Chinese traders returned to the market with optimism after the Lunar New Year holiday but the rest of Asian stock markets remained cautious. Investors reassessed the outlook for Fed interest rate cuts, especially after CPI and PPI data rose above estimates. Markets are currently pricing in a 77% chance of a rate cut in June, according to CME Group's FedWatch Tool.
Regardless, Gold prices continue to recover in the face of widespread USD weakness. The greenback lost ground at the start of the new week as traders braced for the minutes of the Fed's February meeting on Wednesday. Furthermore, the US market is closed for the President's Day holiday, causing the USD to be affected by risk sentiment.
In addition, gold prices also benefited from slowing US government bond yields and geopolitical tensions in the Middle East. Meanwhile, global growth concerns also continue to act as a factor driving Gold prices. Last week, GDP data from the UK and Japan showed both economies falling into recession after reporting two consecutive quarters of negative growth.
Regardless, Gold prices continue to recover in the face of widespread USD weakness. The greenback lost ground at the start of the new week as traders braced for the minutes of the Fed's February meeting on Wednesday. Furthermore, the US market is closed for the President's Day holiday, causing the USD to be affected by risk sentiment.
In addition, gold prices also benefited from slowing US government bond yields and geopolitical tensions in the Middle East. Meanwhile, global growth concerns also continue to act as a factor driving Gold prices. Last week, GDP data from the UK and Japan showed both economies falling into recession after reporting two consecutive quarters of negative growth.
Note
SELL XAU 2018 - 2021TP1: 2010
TP2: 2015
SL: 2031
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