The gold commodity declined by more than one percent on Thursday. The cause is the United States yield return that rises because the optimistic economy data in that country. Some other things also happened.
The stocks deficiency lifted the palladium to its new peak record. That direct its view to the level of $3.000 so far. The spot of gold felt for about 0.9% and became $1.764,50 per ounce.
It reached the lowest point since 15 of April in the level of $1.755,81. The United States gold future declined as well for about 0.6 percent lower and became $1.764,20 some days ago in the market.
Gold is Still In a Short-Term Trend
The increasing obligation yield return and the risk break the safe haven metal. That was stated by a senior analyst lately. He added that now gold is still in a price Increase short – term trend in a daily graphic.
However, that trend is now in danger. If it is unable to push the price above $1.800 for next week or more, some things will happen. The price may will move again to the side to make it falls.
The 10-year benchmark result increase and rises to the peak. That has happened since the April 13th because a recommendation from Joe Biden as the President of America. What is the point?
Basically it is about the trillion dollar fund in a new release and the data which shows the economic recovery in America. The recovery is fastened there, especially in the first quarter period.
Dollar Increase and Its Impact
Besides the reasons above, there are some other factors again. One of them is the dollar increase where it makes gold is quite expensive for the other currencies’ holders in the market.
That increase was around 0.2 percent. USD moved higher on Friday, but it still close to its lowest level weekly. That also becomes a sign of four weeks in a row weakening asides with the Fed decision.
It is known that the Federal Reserve still on it’s decision due to the monetary policy. It is still in a dovish situation even when the economy was recovered. That is as what people were predicted.
For your information, the index of dollar increased by 0.1 percent in 90.648. That was sold around the last level in February. It is based on the data shown in the market lately about their movement.
The Declining Trend Will Be Continued
It seems that the index is on it’s path to end this week in a position of 0.2% lower. That makes the weakening happened in April is around 2.8%. There is one more thing to note due to this situation.
The four weeks in-a-row decline will be the longest one since the six weeks moment until the end of July. Mostly it is because the commodity currency strengthening amidst certain situations.
The example is amidst the price increase, especially for the industry and farming products. The biggest lost for USD this week is to the Canadian and new Zealand dollar. That is the fact.
Meanwhile, EUR / USD Also Drop
Elsewhere, the EUR / USD pair was sold in a lower condition. It declined by 0.1 percent in 1.2113 near the highest point in two months or especially in 1.2150.
That was noted in the previous level before. The GBP / USD was quite flat around the number of 1.3942 so far. The USD/JPY pair also has the same trend where it declined by 0.1%.
This dollar weakening was supported by the Federal Reserve decision to leave its monetary policy which is so easy although they agreed that there is a recovery in the economic aspect.
