Once Again the Rise of Gold Stalled! - Kakiforex.com - Financial Market Media No. 1 in the World Once Again the Rise of Gold Stalled! Once Again the Rise of Gold Stalled!

July 13, 2021

Once Again the Rise of Gold Stalled!

 Gold traded lower at the opening of the European session, following a recovery exhibited by treasury yields and the US dollar causing the attractiveness of the precious metal to diminish.

Entering the European session, gold traded lower around $ 1,800 an ounce, after rising higher last week due to falling bond yields to their lowest level since February.

US 10 -year bond yields returned to gains earlier in the week, being strong at 1.35%.

While the greenback dollar rebounded after recording a decline last Friday, with the dollar index trading higher than its main competitor at 92.22.

The release of US inflation data and Federal Reserve (Fed) Chairman Jerome Powell's speech this week will be the main focus of investors waiting for a clear indication of when the tapering will begin.

In addition, interest rate decisions from the central banks of New Zealand, Canada and Japan this week will also be the focus of the market.

Last week, the People’s Bank of China (PBOC) unexpectedly cut interest rates for all banks by 50 basis points, releasing about 1 trillion yuan of long-term liquidity into the economy.

This is aimed at offsetting the impact of rising commodity prices on business production and operations, which reflects the slowing growth momentum in the world’s second -largest economy.