Gold price (XAU/USD) attracts some buyers and breaks above $2,000 during the early Asian trading hours on Wednesday. The uptick of the precious metal is boosted by the lower US Treasury bond yields and the weaker US dollar (USD).
The November Federal Open Market Committee (FOMC) Meeting Minutes showed all participants agreed policy decisions at every meeting would continue to be based on the totality of incoming information and judged it appropriate to maintain the target interest rate at 5.25%–5.5%.
Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, declines to 103.60, the lowest level since late August. The US Treasury bond yields edge lower, with the 10-year yields dropping to 4.40%. This, in turn, boosts the yellow metal, as US yields are the opportunity cost of holding non-yielding metals.
Economic data released on Tuesday showed that the US Chicago Fed National Activity Index for October dropped to -0.49 from the previous reading of -0.02. Additionally, the Existing Home Sales fell 4.1% MoM from a 2.2% decline in September.
Moving on, gold traders will monitor the US Jobless Claims, Durable Goods Orders, and the University of Michigan Consumer Sentiment survey on Wednesday. Traders will take cues from these figures and find trading opportunities around the gold price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
