Gold price tests resistance while US yields sprint higher
Gold’s price (XAU/USD) edges higher for the second consecutive day and trades around $2,655 on Wednesday after the Institute of Supply Management (ISM) revealed on Tuesday that the prices paid component in the Services sector is turning red hot. The ISM Services Prices Paid index rose to 64.4 in December from 58.2 the previous month. As if that was not enough to push yields higher on inflation concerns, President-elect Donald Trump said at a press conference in Mar-a-Lago that US rates are too high and need to come down substantially, according to Bloomberg.
On the economic data front, this Wednesday, all eyes will be on the Minutes from the Federal Open Market Committee (FOMC). Traders will look for clues about the interest rate path and comments from policymakers from the last Federal Reserve (Fed) meeting in December. Meanwhile, the US Treasury will allocate a 10-year Note, with the benchmark rate just hitting a nine-month high at 4.697%.
Source: Fxstreet
