Gold edged higher to start the week as the improving risk mood made it difficult for the USD to find demand in the absence of high-tier data releases. A Bloomberg report claiming that China was considering an equity market rescue package worth about 27 billion USD triggered a rally in global equity indexes.
On Tuesday, Gold failed to build on Monday’s gains, while the benchmark 10-year US Treasury bond yield held steady above 4%. S&P Global PMI data showed on Wednesday that the business activity in the US private sector expanded at an accelerating pace in January. S&P Global Composite PMI improved to 52.3 from 50.9 in December, Services PMI rose to 52.9 and Manufacturing PMI recovered above 50, pointing to an expansion in the manufacturing sector for the first time since April. In turn, the benchmark 10-year US Treasury bond yield edged higher, causing XAU/USD to drop to a weekly low below $2,020.
On Tuesday, Gold failed to build on Monday’s gains, while the benchmark 10-year US Treasury bond yield held steady above 4%. S&P Global PMI data showed on Wednesday that the business activity in the US private sector expanded at an accelerating pace in January. S&P Global Composite PMI improved to 52.3 from 50.9 in December, Services PMI rose to 52.9 and Manufacturing PMI recovered above 50, pointing to an expansion in the manufacturing sector for the first time since April. In turn, the benchmark 10-year US Treasury bond yield edged higher, causing XAU/USD to drop to a weekly low below $2,020.