Gold prices are working on their third consecutive day higher as a spat of weaker US economic data has undercut US Treasury yields, and in turn, the US Dollar (via the DXY Index). Markets are quickly shifting into a ‘bad news is good news’ mindset, insofar as weaker US data means that Federal Reserve policymakers may not be as aggressive with their tone in forthcoming remarks.
Outside of the weaker US Dollar and a potential contraction in the US nonfarm payrolls report this Friday, there are reasons to doubt that gold price’s push higher will be sustained.
