Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Trading news
Back
15 Mar 2021

Gold Price Analysis: XAU/USD trades near session tops, just above $1730 level

  • Gold edged higher on Monday amid a modest pullback in the US Treasury bond yields.
  • The risk-on mood, an uptick in the USD kept a lid on any meaningful gains for the metal.

Gold traded with a mild positive bias through the first half of the European session and was last seen hovering near the $1730 region, up around 0.55% for the day.

The precious metal built on the previous session's goodish rebound from levels just below the $1700 mark and gained some follow-through traction on the first day of the next trading week. This marked the second consecutive day of a positive move and was exclusively sponsored by a modest pullback in the US Treasury bond yields, which tends to drive flows towards the non-yielding yellow metal.

Investors remain optimistic about the US economic outlook amid the impressive pace of COVID-19 vaccinations. This, along with the passage of a massive US stimulus package, has been fueling the reflation trade and forced investors to start pricing in a possible uptick in US inflation. This, in turn, pushed the yield on the benchmark 10-year US government bond to over one-year tops on Friday.

However, expectations that the Fed could take some action to curb the sharp rise in long-term borrowing cost provided some respite to bond traders. Hence, the uptick could be solely attributed to some short-covering ahead of this week's FOMC monetary policy meeting. That said, a combination of factors held bulls from placing aggressive bets and kept a lid on any strong gains for the XAU/USD.

The prospects for a faster US economic recovery from the pandemic continued underpinning the US dollar, which could weigh on the dollar-denominated commodity. Apart from this, the underlying bullish sentiment in the financial markets – as depicted by the upbeat tone around the equity markets – might further collaborate to cap the upside for the safe-haven XAU/USD, at least for the time being.

Market participants now look forward to the US economic docket, featuring the only release of the Empire State Manufacturing Index for some impetus later during the early North American session. Traders will further take cues from the broader market risk sentiment, the US bond yields and the USD price dynamics in order to grab some short-term opportunities.

Technical levels to watch

 

Mar 15, 2021

FOMC: No change expected at this week’s meeting – UOB

Lee Sue Ann, Economist at UOB Group, assesses the upcoming FOMC meeting (Wednesday). Key Quotes “Fed Chair Jerome Powell’s latest testimony continued
Read more Previous
Mar 15, 2021

Emerging Markets to struggle in 2021 despite better than expected global growth – Morgan Stanley

With global growth set to exceed expectations in 2021, emerging markets' assets would appear set for outperformance. But this year, three factors clou
Read more Next