$XAU GOLD IS MISSING MOMENTUM AFTER A SHARP DROP 📉
After falling more than 1% in the previous session, gold is still struggling to regain its upward momentum.
As of September 7, spot gold is down 0.85%, to around $4,392.82 per ounce, while the December futures contract is also down 0.84%, to $4,439.21.
The main pressure comes from U.S. employment data coming in stronger than expected. This forces the market to reassess the Fed rate outlook.
According to the CME FedWatch, the probability of a Fed rate hike at the September 15–16 meeting is currently 58.4%, up from around 55% before the employment data was released.
The issue is that gold is an asset that does not generate yield. The higher the interest rates, the less attractive holding gold becomes. Money tends to flow toward assets offering better returns.
Right now, $4,400 is an extremely important price zone to watch. 👀
Holding above $4,400: the buyers may return.
Staying below $4,400: selling pressure could still maintain its advantage.
Not only gold—other precious metals are also in the red:
Silver: -1.01%
Platinum: -0.71%
Palladium: -0.26%
In summary: U.S. data is stronger than expected. The Fed may continue to take a firm stance, and gold has not yet found the momentum to rebound. The $4,400 mark will be the area to pay special attention to in the short term. 📊 #45NgayTuDoTaiChinh #TinFed #TheoDõiFOMC
After falling more than 1% in the previous session, gold is still struggling to regain its upward momentum.
As of September 7, spot gold is down 0.85%, to around $4,392.82 per ounce, while the December futures contract is also down 0.84%, to $4,439.21.
The main pressure comes from U.S. employment data coming in stronger than expected. This forces the market to reassess the Fed rate outlook.
According to the CME FedWatch, the probability of a Fed rate hike at the September 15–16 meeting is currently 58.4%, up from around 55% before the employment data was released.
The issue is that gold is an asset that does not generate yield. The higher the interest rates, the less attractive holding gold becomes. Money tends to flow toward assets offering better returns.
Right now, $4,400 is an extremely important price zone to watch. 👀
Holding above $4,400: the buyers may return.
Staying below $4,400: selling pressure could still maintain its advantage.
Not only gold—other precious metals are also in the red:
Silver: -1.01%
Platinum: -0.71%
Palladium: -0.26%
In summary: U.S. data is stronger than expected. The Fed may continue to take a firm stance, and gold has not yet found the momentum to rebound. The $4,400 mark will be the area to pay special attention to in the short term. 📊 #45NgayTuDoTaiChinh #TinFed #TheoDõiFOMC
