Commodities
Home›Commodities›Precious Metals›Gold rebounds as yen spike weakens the dollar and revi…
Gold rebounds as yen spike weakens the dollar and revives metal demand
TD Securities analysts tied the rebound to a shift in rate expectations around US NFP and a CTA selling threshold near $4,300/oz.
Gold prices reversed earlier losses and rebounded sharply on Wednesday, according to FXStreet, as a sudden rise in the Japanese yen triggered broader selling pressure on the US dollar. The move helped XAU/USD stage a rebound after the day’s earlier decline.
TD Securities analysts Ryan McKay and Bart Melek said upcoming US non-farm payrolls and a renewed hawkish Fed tone are key for gold, with prices trading near CTA selling thresholds around $4,300 per ounce. They also pointed to simulations suggesting that further weakness toward $4,200 to $4,100 per ounce could bring CTA positioning closer to flat.
While they expected the near-term setup to be sensitive to the NFP and Fed narrative, TD Securities said they saw limited material downside over the longer term as the broader precious metals backdrop improves.
In FX markets, FXStreet also noted GBP/USD slipping back toward 1.3470 after a multi-day negative streak, while EUR/USD rose toward 1.1600 later in the day as the US dollar weakened.
Latest closeGold $4,431.70 ▲1.9%|EUR/USD 1.159 ▼0.1%|GBP/USD 1.348 ▼0.2%