Gold Edges Lower as Dollar Improves – Fed Rate Cut Sentiments Weigh
On Tuesday, GOLD is trading lower over a strengthening dollar following a better than expected NFP report which released late last week. This has helped reduce the sentiments of a Fed rate cut, driving bullishness in the dollar and reducing some of the safe haven appeal of gold.
At the time of writing, gold is trading at a little above $1,393, as US bond yields also edge higher. The likelihood of a 0.5% rate cut by the Fed in July have dropped from 19.9% last week to 2% this week as US jobs grew by 224k in June.
However, gold prices continued to remain supported over softness in stock markets. Asian stocks fell to their lowest in over two weeks early this morning, mainly driven by the uncertainty of whether the Fed will cut interest rates anytime soon. Equity markets are trading with high levels of uncertainty as they wait to find out about the Fed’s plans.
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