Fresh Lows for Gold Amid a Pickup in the US Dollar
- Gold pushes lower for a second straight day on Tuesday
- Key US data ahead in the week that could affect gold prices
Fresh Lows for Gold
Gold declined heavily on Monday and touched a two-week low at $1,705. This comes after relatively calm trading during the early hours of the European session. As soon as US markets opened for trading, gold started to slip, losing nearly 1.00%, or $15, in the first 30 minutes of the US session.
A little later, gold slipped to its intraday low of $1,705. Which prompted market participants to start buying at these levels and provided enough support for the precious metal to move higher and close off its lows at $1,712. Currently, gold is trading at around $1,696. The metal is still under bearish pressure while the US dollar remains well bid.
For the past couple of weeks, gold was trading mostly sideways. While investors were keeping their focus on the rising bond yields and the gyrations in the stock market, essentially neglecting the precious metal. For that time span, gold traded in the range of $1,725 and $1,755. The consolidation started on March 10, a couple of days after gold dipped to a 10-month low at $1,677.
Prompted by absent macroeconomic data and fundamental drivers, investors have been pushing gold lower as the economic picture brightened. Since reaching an all-time high of $2,075 in August last year, gold has been trading to the downside and has lost 18% from its peak price to the current market price.
Key US Data Ahead
On Tuesday, the strengthening US dollar continues to weigh on the yellow metal. Gold bugs still cannot gather sufficient buying power to push it higher or even keep it steady. As the week unfolds, however, gold traders and investors will be monitoring the latest data coming out of the US. The non-farm payrolls and the unemployment data scheduled for Friday are expected to create heightened volatility in the gold market. This could push gold prices in both ways, depending on what the reports show. The NFP data is generally considered the most important monthly economic indicator that gauges the health of the US economy. For the month of February, according to the non-farm payrolls, the US economy added 379,000 new jobs.
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