Gold has held strong as what appeared to be notable progress on ceasefire talks has since been walked back. Nonetheless, strategists at TD Securities highlight the downside risks that are still in place for the yellow metal.
Gold will have to contend with macro outflows associated with a hawkish Fed
“Headlines suggest Russia is even sending new forces, further emboldening the safe-haven flows into precious metals. At the same time, the 2y-10y curve flirting with inversion has further fueled talk of recession on the horizon.”
“While geopolitical tensions and yield curve recession signals re-ignite investor interest in gold, downside risks still remain amid a hawkish Fed backdrop and as negotiators continue to work towards a ceasefire.”
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GBP/USD extends rebound beyond 1.3150.GBP/USD has continued to push higher in the early American session amid broad-based selling pressure surrounding the greenback. The pair is holding above 1.3150 with the US Dollar Index staying deep in the red near 98.00 despite upbeat ADP data.
Gold struggles to hold above $1,930 after US data.Gold has erased a portion of its daily gains after having met resistance above $1,930. The data from the US revealed that private sector employment increased by 455K in March and the real GDP grew at an annualized rate of 7.1% in the fourth quarter.
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