Gold Buyers Adopt a Wait-and-See Attitude

The greenback known for normally moving inversely against the precious metal inched up by 0.15%, still gold bears run seem to be capped by falling 10-year U.S. Treasury yields which plunged below 1.50% for the first time since May 7.

Metal traders have their minds focused on the Consumer Price Index report, known for measuring changes in inflation and purchasing trends including jobless claims data, due later in the day, to get further insights on the world’s largest economic growth and direction of the U.S Apex Bank’s monetary strategy.

Consequently, Market watchers further disclose a surprise upside in inflation could tilt the U.S Federal Reserve Bank in taking emergency discussions on tapering its asset purchases sooner than later, despite the prevailing narration that shows most U.S monetary officials would still be looking for substantial progress toward maximum employment before considering tapering.

Gold bugs will however be banking on the European Central Bank scheduled to postulates its Interest rate decision in a few hours time, with European monetary officials having all the evidence they need to keep in place their ultra-loose monetary stimulus program intact, suggests gold bulls will find strong support around the $1,850 per ounce price band.

Recent price actions further reveal gold buyers have adopted a wait-and-see attitude, leaving gold prices increasingly vulnerable to a near-term pullback as demand for gold futures contracts are now slowing alongside physical flows, amid India’s ongoing battle against its worst viral crisis in history.