The gold price is under further pressure today as investors exit the safe haven commodity in favour of the US dollar after yesterday’s positive round of economic data from the US
ISM manufacturing PMI numbers hit the market at 60.8, well above expectations for a figure of 58 and all but guarantees a rate hike from the US Fedral Reserve in the coming months.
Gold is now sitting at a 7-week low and has certainly fallen out of favour with traders as Geo political tensions cool down, which give little reason to hold onto non-interest bearing investments such as gold.
Unless the situation drastically changes between the US and North Korea it is hard to see gold bouncing back and further losses are expected and it seems the market is bracing for such a situation
"The factors that pushed gold toward $1,360 in early September are now reversing," said Julius Baer analyst Carsten Menke.
"The U.S. dollar and yields have rebounded from their recent lows and it looks like positioning in the gold futures market is somewhat reversing, with some long covering and new shorts." He added
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