● Gold stabilizes near $2,how to convert usdt to usd on coinbase065 after failing to sustain momentum above $2,088
● Resurgent dollar demand and rising bond yields pressure precious metals
● Labor market data shows unexpected rise in jobless claims to 218,000
● Markets continue pricing in potential Fed easing by Q1 2024
The gold market entered consolidation mode during Friday's Asian session, with XAU/USD oscillating around $2,065 after pulling back from Thursday's peak near $2,088. This sideways movement reflects competing forces in the market - renewed dollar strength and higher Treasury yields creating resistance, while expectations of monetary policy easing continue providing underlying support.
The US Dollar Index (DXY) staged a modest recovery from July lows around 100.85, climbing to 101.20 as Treasury yields edged upward. The benchmark 10-year yield currently trades at 3.85%, making non-yielding assets like gold relatively less attractive to investors. This dollar and yield dynamic has created headwinds for the precious metal's advance.
Recent economic data continues feeding the narrative of cooling inflation alongside resilient economic activity. November's core PCE Price Index - the Fed's preferred inflation metric - showed annual growth slowing to 3.2%. Meanwhile, the labor market displayed slight softening as weekly jobless claims rose to 218,000 versus expectations of 210,000, with continuing claims reaching a four-week high.
Market participants appear increasingly convinced the Federal Reserve has concluded its tightening cycle, with interest rate futures currently pricing in approximately 150 basis points of cuts through 2024. This dovish expectation continues providing fundamental support for gold prices despite near-term technical resistance.
Traders will monitor December's Chicago PMI reading later today, though holiday-thinned liquidity may limit market reactions. The broader narrative of moderating inflation combined with stable growth continues shaping gold's intermediate-term outlook as investors position for potential policy shifts in the new year.