XAU/USD FUNDAMENTAL BACKDROP
Spot gold extended its move lower this Monday now looking at testing July swing lows. The USD hit fresh 20-year highs pressing negatively on the yellow metal. The rates market has overshadowed all other variables at this point and will likely remain in focus pending another fundamental catalyst (see economic calendar below).
U.S. real yields (see 10-year below) shot up after the Jackson Hole Economic Symposium expectedly confirmed a hawkish Federal Reserve thus increasing the opportunity cost of holding bullion – traditionally an inverse relationship.
