Daily Digest Market Movers: Gold price lacks follow-through buying amid the upbeat market mood
- The markets have fully priced in a 25-basis points rate cut by the Federal Reserve in September and have been speculating on the possibility of a 50-bps rate cut, offering support to the Gold price.
- Adding to this, the assassination of Hamas chief Ismail Haniyeh in Tehran last week has raised the risk of retaliatory strikes by Iran on Israel and further benefited the safe-haven XAU/USD.
- The US data released on Thursday showed that there were 233K initial jobless claims in the week ending August 3 as compared to expectations for a 240K print and 249K in the previous week.
- The upbeat reading eased concerns about an economic downturn in the world's largest economy, triggering a move higher in the US Treasury bond yields and lifting the US Dollar to the weekly top.
- Meanwhile, receding fears of a possible recession in the US boosted investors' confidence and led to a strong relief rally in the US equity markets, which, in turn, capped gains for the precious metal.
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