The prices of the yellow metal rose in the early hours of this morning, to touch $1925 levels per ounce, supported by the dollar’s decline since the opening of the week’s trading, and the US Treasury yields for 10 years fell to the level of 4.2%, retreating more than the highest level in 15 years at 4.34%, which it touched. on August 21, indicating that the economy is not strong enough, ahead of crucial data on inflation and jobs this week that could determine the future of interest rates, as markets continued to assess expectations for Fed policy decisions ahead of a series of economic releases.
Meanwhile, Jerome Powell’s comments in Jackson Hole prompted financial markets to price in another 25 basis point rate hike in November, which would bring the final interest rate to 5.75%. Meanwhile, risks remain for longer-term US bond prices in the secondary market due to concerns about higher debt issuance from the Treasury Department this month.
Technically, the yellow metal retreated from $1925 an ounce, coinciding with weak purchasing power on momentum indicators for a 4-hour interval, heading in its trading to touch the 50-day weighted average, so the yellow metal is likely to continue the bearish correction in the medium term, targeting levels 1907, then returning to rise again, targeting $1940 an ounce.
