Gold Prices Stabilize Amid Global Bond Selloff
Gold prices continued to slide at the start of the week but managed to stabilize after a significant decline. The precious metal's value plummeted on Monday, reaching within touching distance of $4,100 due to increasing US Treasury bond yields and hawkish comments from policymakers.
The situation changed on Tuesday when weak US data, including a decline in JOLTS Job Openings and the Conference Board's Consumer Confidence Index, limited the US Dollar's gains. As a result, XAU/USD rose over 1% and retraced some of Monday's losses.
However, on Wednesday, the annual inflation rate, as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, remained steady at 3.4%. Although this was lower than analysts' estimates, a positive revision to the second-quarter GDP growth and an increase in private sector employment helped cap XAU/USD's rebound.
The US Dollar continued to strengthen on Thursday as the 10-year US Treasury bond yield reached its highest level since April 2002. Despite this, gold attracted safe-haven demand amid a global bond selloff and held its ground.