On Monday on thin market the gold fell by more than 1% on the background of further USD dollar strengthening and the growth of US Treasury bonds yields.
Yesterday there was no important economic and geopolitical news on the market in the US, there were no other factors that had a major influence on trading. European traders focused on the movement of dollar and technical factors they played Friday US labor data . Since both instruments showed growth yesterday (USD dollar and treasure yields), the entire precious metals market was under quite pressure, the leaders of the decline were -1.7% silver, then -1.2% gold and platinum finished trading with a result of almost -0.5%.
Now gold is trying to adjust, but a significant limitation to the price increase is the yield on 10-year US Treasury bonds, which continues to grow, setting new perennial highs, at the time of writing the survey, the mark of 3.246% was reached.
However, there are factors on the market that can provide significant support to the yellow metal. High geopolitical and economic risks can support the demand for gold, which in recent months has regained its defensive-asset status. This morning, the IMF presented its report on the development of the world economy and adjusted its forecasts downward. The forecast for global economic growth has been reduced from 3.9% to 3.7%. The main reason for the adjustment data is the ongoing trade wars, as well as increased volatility in emerging markets. At the same time, IMF kept the forecast for the growth of the US economy at the same level - 2.9%.
Today again, important economic data is not expected to be published on the market, so the market will continue to be influenced mainly by the factors mentioned above. The focus should be on the dollar and the yield curve of 10-year US bonds.