The price of gold slipped for about 1% to the lowest area in two weeks on Thursday. That was depressed by the increasing United States bond yields. The risky tastes owned by the market participants also increased. 

That was in line with a plan made by the Federal Reserve or the Fed. They have a plan to make an aggresively interest rate. The spot of gold was weakening up to the level of $1936.65/troy ounce yesterday.

That was still happened although a strengthening can be seen and it’s position was moved to the area of $1949.43/troy ounce. Mary Daly as the Fed President of San Fransisco gave her statement.

She said that a possibility of ½% interest rate incease next month is quite solid. The price of gold was getting a correction because market hoped that the Fed will raise their interest rate in a more aggresive way. 

Before, the Gold’s Price Experienced a Rally

On Monday, the price of this precious metal experieced a rally. It almost got closer the psychology resistance area in $ 2000/troy ounce because of the increasing demand.

That situation was triggered by the increasing inflation speed and Russia – Ukraine conflict. The GBP / USD has been losing it’s attraction after extending it’s rebound to 1,3100 on Thursday. 

That pair was pressed by careful comments made by the Bank of England representatives. It was also caused by a disappointing data release from the United Kingdom. 

This pair was under a pressure of bearish in Friday morning and last was sold at it’s lowest level since November 2020 under the level of 1,2900. Their position may also change in the future. 

The Buyers Lost Their Interest to Pound sterling 

The profit taking action ahead of this weekend can help this pair to rebound. However, it is impossible for the buyers to show their interests on the United Kingdom Pound Sterling. 

That was based on the newest significant decline which is happened lately. The UK national Statistic office reported on Friday that the retail selling declined by 1.4 percent for a monthly basis in March. 

This number follows the contraction happened in February for about 0.5% and even worse than the market expectation for a 0.3% decline. This situation triggers some comments from several figures. 

One of them is from Andrew Bailey as the BOE governor. He noted that the UK inflation surprise has more similarities to the EuroZone than the United States. 

Elsewhere, Greenback Comes with the Same Power

Further more, Bailey said that people should not satisfied with the inflation expectation. Market participants must aware to the very tight line between solving the inflation and output effect from this condition. 

It is especially from the real income surprise. In the other side, greenback is collecting it’s power back after a sharp correction downside amidst this middle Sunday. 

That situation forces the GBP / USD to push everything lower than before. Jerome Powell as a FOMC leader gave his hawkish comment in the IMF event which leads to some situations. 

One of them is the United States obligation yield result benchmark for 10-year which increased by more than one percent every day. That gave a pull for greenback. 

Dollar still becomes a Safe Asset so far

Besides some reasons above, the market environment which avoid the risks, as can be seen from a more than -0.5% decline in the UK 100 FTSE index, may help the USD found a demand as a safe asset. 

In the second quarter of that day, Bailey will tell about his speech. The April manufacture and service of America will be also seen as a new support.

That was except the risks start to dominate the power. The GBP / USD will still under the bearish pressure aside of the America’s data.