Gold prices continue to search for direction ahead of Fed minutes
While gold prices follow a horizontal course in global markets, investors are focused on the Fed minutes to be released on Wednesday.
Gold prices, which continue to search for direction in global markets, find support from weak US employment data while remaining at a critical threshold under bond and oil pressure.
Current Gold Prices
Ending last week with a loss in value, the ounce price of gold made a flat start to the new week, beginning trading at the $4,144 level. At the same hours, gram gold in the spot market started the day at the 6,548 TL level.
While experts monitor critical resistance points for the ounce price, they draw attention to the importance of strong support levels in potential declines.
Impact of Employment Data
It was notable that non-farm employment in the US remained below expectations in September and the unemployment rate rose to 4.2 percent. This weak picture weakened the hand of the US Federal Reserve regarding additional rate hikes.
The increased probability of the Fed keeping interest rates steady provided short-term relief and breathing room for gold prices, supporting the markets.
Bond and Oil Pressure
Despite the positive atmosphere on the employment front, the yield on the 10-year US Treasury bond continues to maintain its high course. The rise in the dollar index and the persistence of high oil prices keep inflation concerns alive.
Expectation for Fed Minutes
The most important short-term route for the markets will be the Fed meeting minutes to be released on Wednesday. The minutes will clearly reveal the disagreements among bank members regarding interest rate policy.