Ella 
In early Asian trading on Thursday, gold prices were still facing selling pressure. A stronger U.S. dollar and rising U.S. bond yields supported gold’s decline. Gold prices are currently trading near $1,876, up 0.11% on the daily line.
Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of currencies, surged above 106.65, at its highest level since November. U.S. Treasury yields also rose, with the 10-year Treasury yield closing at 4.60%, the highest level since 2007.
On Wednesday, the U.S. Census Bureau reported that durable goods orders rose 0.2% monthly in August, down from a 5.6% decline in the previous month and above expectations for a 0.5% decline. Elsewhere, orders for durable goods excluding transportation rose 0.4% on the month, better than expectations for a 0.1% rise. Core capital goods orders rose 0.9% monthly, better than expectations of -0.4%. After the U.S. data improved, the U.S. dollar exchange rate rose across the board, putting some pressure on gold prices priced in U.S. dollars.
Risk aversion dominated markets as investors weighed the risks to growth that could come from a rise in long-term interest rates and an impending U.S. government shutdown. However, market participants will be paying close attention to comments from Federal Reserve Chairman Jerome Powell this week. If Fed Chairman Powell’s speech is not hawkish enough, it may prevent the dollar from rising and boost gold prices.
On Thursday, market participants will focus on the weekly U.S. jobless claims report, the third revision of second-quarter gross domestic product and existing home sales data. The Fed’s preferred measure of consumer inflation, the core personal consumption expenditures (PCE) price index, will be released on Friday, an event that markets will closely watch. Traders will get clues from this data and look for gold price trading opportunities.
