Gold returned to the $1700 level after the dollar and U.S. bond yields fell amid hopes for a slowdown in U.S. rate hikes, which led to an increased number of yellow metal buyers.
A pair of weaker-than-expected economic reports, showing that manufacturing activity suddenly turned down and construction activity was worse than expected, somewhat fueled optimism that the Federal Reserve might be forced to consider a U-turn to avoid pushing the economy into a deep recession.
Sevens Report Research notes that «the fundamental backdrop is getting less bearish» for gold «as treasury yields and the dollar may be approaching a peak». However, «if we don't see yields and the dollar peak», investors should expect the precious metal to fall to new lows.
Source: Investing.com
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