XAU / USD rises within the integration area

 

Gold (XAU/USD) has maintained its position on the Asian daily chart, where prices have risen since the last week of November. At the time of this writing, XAU/USD were trading at a rise of $ 1,778.54 and 0.18 after rising from a low of $ 1,775.31 to a previous high of $ 1,779.69. The market was defensive overnight before the very busy central bank schedule and today’s US Consumer Price Index were released next week. The spread of Omicron varieties is an important issue as uncertainty keeps bonds tight and stocks at the edge.

US bond yields fell overnight after three consecutive positive days and from a day-to-day perspective, 10-year yields could fall further between 1.47% and 1.45%. Yields on 2-year government bonds traded at 0.69% and yields on 10-year government bonds fell 1.52% to 1.49%.

“Gold is struggling as market prices for Fed hikes become more aggressive, as traders see a higher chance of a May takeoff,” analysts at TD Securities. ” Against this backdrop, the yellow metal has repeatedly failed to sustain above the short-term hedging threshold of the CTA, which could indicate that a notable selling line has been provided against the short-term hedging. buy CTA,” the analysts added.

“After all,” they explained, “the sentiment towards precious metals remains pervasive, as evidenced by months of consecutive liquidation of ETF holdings as participants prepare for a Fed withdrawal. . Against this backdrop, as the  inflation numbers are expected to continue to rise through the first few months of the new year, suggesting that the market price for Fed hikes could  become more drastic, we conclude that that they are really too hawkish. In fact, with both a quick cut and more than three rate hikes already slated for 2022, the balance of risks for gold positioning remains bullish, as geopolitical risks remain and viruses can catalyze relocalization. Treasury yields and Wall Street benchmarks fell the day before, reflecting risk-off sentiment, but recent corrective pullbacks in both risk gauges are market optimism on the bright Asian calendar. Going forward, gold traders will pay particular attention to risk-averse catalysts in the face of bearish chart patterns called heads and shoulders. It emphasizes today’s US Consumer Price Index (CPI) as an important factor.