Gold Price Prediction: Choppy Session Continues, Brace for a Breakout
Arslan Butt • 2 min read
Meanwhile, the pre-ECB cautious mood puts an extra burden on the market sentiment. Despite the risk-off mood, the broad-based U.S. dollar failed to stop its previous-day bearish moves and remained weak near multi-week lows as losses in U.S. Treasury yields declined the safe-haven U.S. currency’s interest-rate advantage. Conversely, the losses in the U.S. dollar could be short-lived or temporary as the market’s downbeat mood could revive the safe-haven demand in the market. However, the downticks in the USD become the key factor that kept gold higher as its price is inversely related to the price of the U.S. dollar. Moving on, the market traders will keep their eyes on the European Central Bank (EBC) policy decision, which is due to be handed down later in the day. The ECB is not expected to change current rates neither bond purchases. Across the pond, risk catalysts like geopolitics issues will also offer fresh direction to the markets.