
- Gold bears could come under pressure into the closing sessions of the week.
- The US dollar has lagged behind the rise in yields but is making a comeback from a confluence of key daily support.
The gold price has moved back to a flat position on the day to print around $1,629.25 at the time of writing having travelled between a low of $1,622.54 and $1,628.93 thus far, reversing two losing sessions as the US dollar eased.
There has been a disparity in the price of the US dollar and US yields which may come back to bite the gold bugs before the week is out, however. Federal Reserve Bank of Philadelphia President Patrick Harker said Thursday the central bank is not done with raising its short-term rate target amid very high levels of inflation. His most hawkish of comments sent yields to fresh cycle highs, the strongest in a decade. He said the Fed has made disappointing progress at lower inflation and added that inflation in 2023 would fall to around 4% and 2.5% in 2024, which is still well above the 2%. as such risk sold off, yield and the greenback rallied weighing on the price of gold.
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