The price of gold continued to soar and had broken through $2,000 yesterday but fell back around below that level in the early trading of the Asian session this morning.
The situation is boosted by lower US treasury bond yields and the currently weakening USD.
The November FOMC meeting minutes report revealed that policy decisions will be based on the latest information and will keep interest rates at a target of 5.25% – 5.5%.
In addition, the US Dollar Index was found to be in decline against a group of six major currencies, falling 103.60 to the lowest level since the end of August. US bond yields fell 4.40% and boosted gold prices as the cost of production was not removed.
Economic data released yesterday showed the US Chicago Fed National Activity Index for October down 0.49 from the previous reading of 0.02. Meanwhile, existing home sales fell 4.1% from 2.2% in September.
Gold traders will continue to monitor US jobless claims data, durable goods orders data and the University of Michigan consumer sentiment survey today to identify gold trading opportunities.
