The Gold price rebounded from a fresh 2022 low of $1,680 a troy ounce and now trades in the $1,711 price zone. The dollar shined after the European Central Bank announced its monetary policy decision, which initially hit the US Dollar as policymakers hiked rates by 50 bps. However, the absence of clues about what’s coming up next discouraged bulls.
In the meantime, market participants pay close attention to government bond yields, as recession fears remain the main theme. Treasury yields advanced throughout the first half of the day but receded after Wall Street’s opening, halting the dollar’s appreciation. XAUUSD retained gains above the $1,700 threshold.
The market’s mood remains bitter, with US indexes battling to retain the green amid encouraging earnings reports. Still, softer-than-anticipated US data will likely prevent them from rallying.
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