The US dollar dynamics have largely improved as USD gained considerable strength in the forex market today. At press time, the US dollar is boldly sitting at a positive price number, up by 0.30% at 105.71. The change in the US dollar metrics has primarily been documented due to the fresh release of the nonfarm payroll data report.
The positive US job data metrics further bolstered USD’s prospects, helping it gain considerable market momentum. However, the robust US dollar metrics have taken a toll on gold prices, leading them to document a noteworthy price fall.
Also Read: Central Banks Piles Up Gold (XAU), Challenging The US Dollar’s Domain
Why Is the Dollar Up Today?
At press time, the US dollar increased by nearly 0.30%, trading at the 105.71 price mark. Furthermore, the ten-year US yields have also risen by 4.3%, smoothing the path for the US dollar to ascend to new highs.
The positive US dollar metrics have largely been documented due to the exceptional US nonfarm payroll data, which boosted the USD prospects to peak at a new price high. The reports revealed that nearly 292,000 new jobs have been added to the US employment sector. The new numbers have surpassed the earliest job metrics of April, ushering in a new wave of change for the sector to encounter in the long haul.
“The US Dollar Index increased by 0.70 percent to close at 104.93 on Friday. Marking a 0.25 percent rise for the week. The ten-year US yields rose by 3.28 percent to 4.43 percent. And two-year US yields increased by over 3 percent on Friday, closing at 4.89 percent.” As Shared by Praveen Singh, Associate Vice President of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas later shared.
Why Is Gold XAU Down Today?
Gold has suffered a notable price setback as the US dollar gained strength on a global plain. The yellow metal has taken a sharp price dip as the US dollar resumed its prominence by banking on the current US job data stats release. At the same time, China, which was buying gold at a record rate, suddenly halted its XAU purchase, pushing gold to document a price decline in its trajectory.
The data shared via the Hong Kong Census and Statistics Reveals that China’s gold imports fell significantly in May. The nation’s gold purchase metrics dropped by 38% in May, triggering a speculatory spree to run rife within the realm of finance.
Also Read: Cardano: Here’s When ADA Will Hit The Ambitious Price Mark Of $3.10
The current prospects, combined with expectations surrounding a looming Federal rate cut in July, further pushed the prices of gold to claw back.
At press time, gold is trading at $2,297, having slightly recovered from its sharp price fall. According to notable analyst Rashad Hajiyev, gold may further bottom down later this week.
“I believe gold will bottom sometime this week around the marked circle. Thereafter, gold is going to recover very slowly into the month end. I expect July and August to be very good months for precious metal.”
