Gold prices dropped massively last week, attacking nine-month lows of $1732 as the US dollar found unexpected demand amid a risk-off market profile.
Traders also traded on news of the former Japanese Prime Minister Shinzo Abe murdered at a political rally in Japan. He was shot twice from behind, by a shotgun in the chest and was rushed to the hospital, succumbing to his wounds a few hours later.
Additionally, imminent recession worries with aggressive Fed rate hike expectations and the sell-off in the EURUSD pair towards parity are heling the US dollar at gold’s expense. Within risk-off flows conquered, the US Treasury yields are losing their appeal, as government bonds remained favored.
Global markets are impatiently waiting the release of the all-important US Retail Sales on Friday which will show the overall inflation on consumer prices for last month. XAUUSD, therefore, remains unprotected to downside risks next week but with all eyes on US numbers on Wednesday,Thursday and Friday.
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