Gold prices entered the new week under selling pressure near the $4,200 threshold
While global markets focus on upcoming inflation and employment data from the US, spot gold started the new week under selling pressure and around the $4,200 level.
Affected by the US Federal Reserve's rate moves and the rise in bond yields, spot gold is trying to stabilize near the $4,200 threshold in early trades of the new week.
Selling Pressure in Markets
Gold started the new week under selling pressure as a heavy US data calendar is monitored. Retreating to the $4,250 levels in the second half of last week, spot gold is trading around the $4,200 threshold in the initial trades of the new week.
Fed Policies and Bond Yields
The decline in gold is driven by the US Federal Reserve's resumption of rate hikes, the strengthening of the dollar, and the rise in US bond yields. The 10-year US Treasury yield climbed to 5.16 percent, while the dollar index approached 101.
Job Openings and Employment
The first major data of the week will be the US job openings to be released on Tuesday, September 29. The JOLTS data will provide signals on how robust labor demand remains in the country.
PCE Inflation and Growth
One of the most important days of the week will be Wednesday, September 30. The core personal consumption expenditures price index, closely monitored by the Fed, will be released, and the third estimate of growth data will be announced on the same day.
Critical Non-Farm Payrolls
The actual critical data of the week will be the non-farm payrolls report to be released on Friday, October 2. Alongside employment growth, the unemployment rate and changes in wages are also in the focus of the markets.
Exchange Rate Effect on Gram Gold
In Turkey, the direction of gram gold is determined by the USD/TRY exchange rate as well as the ounce price. The rise of USD/TRY during the decline in spot gold is among the factors that may limit the loss in gram gold.