Gold is increasingly difficult to compete with

Sep 8, 2023

Gold prices extended gains for a second straight day, trading around $1,920 a troy ounce higher during the Asian session on Friday. The yellow metal's price is receiving minor support from a correction in the US Dollar (USD) after a three-day bullish streak, which could be attributed to a correction in US Treasury yields. The yield on the 10-year US Treasury note fell to 4.22%, down 1.36% in two days.

The US Dollar Index (DXY), which measures the Greenback's performance against six other major currencies, traded around 104.90 below its highest since April. The index is continuing to cheer a consistent flow of positive data regarding the state of the US economy.

Sep 8, 2023

Note

Gold today had its first day of price increase after 5 days of price decline despite good economic materials for USD.

Data released in the US on Thursday showed initial jobless claims fell to 216, beating market estimates. After the report, Gold declined at times around 1916 and recovered to increase again after that.

The economic data released this week is mostly negative for Gold, however with Gold failing to make a lower low today suggests that selling may have begun to take profits.

There is no important news announced today, gold prices may continue to adjust up slightly

Sep 8, 2023

Note

Gold prices gained some positive traction for the second day in a row and recovered further from a more than one-week low around the $1,915 area touched on Wednesday. XAU/USD maintained its bid throughout the early European session and is currently trading around the $1,925-$1,926 region, up more than 0.30% on the day.