The price of gold remains in positive territory but has retreated from the day’s peak of $2,200 observed during the overnight session for North American traders. This pullback coincides with a resurgence in the US Dollar at the opening of Wall Street, offsetting earlier gains driven by a decline in US Treasury yields. As of the current writing, the XAU/USD pair is trading at $2,177, marking a modest increase of 0.31%.
The US Dollar Index (DXY), which gauges the performance of the Greenback against a basket of six major currencies, is trading flat at 104.30. Despite this, the dollar’s stability presents a headwind for the non-yielding precious metal. However, the decline in the US 10-year benchmark note rate by one basis point to 4.243% has provided some support to the gold market.
On the economic front, mixed signals emerge from the US economic docket. Durable Goods Orders have surged to their highest level since 2022, indicating strength in manufacturing activity. Conversely, the Conference Board’s report suggests a decline in Consumer Confidence for March, reaching its lowest level in four months. These contrasting indicators underscore the uncertainty surrounding the economic recovery and its potential impact on gold prices.
The interplay between the US Dollar’s movements, Treasury yields, and economic data releases continues to shape the trajectory of gold prices. Investors remain vigilant for further developments in monetary policy, economic indicators, and geopolitical tensions, which could influence market sentiment and drive fluctuations in the precious metal’s value.
