Gold was getting the attraction for the four days in a row. That Is why; this commodity was up to the level of $1.800, back close to the one month peak ahead of the American session. 

That was happened on Friday. That momentum is exclusively affected by the new selling actions around the US dollar. The USD decline doesn’t have a clear fundamental catalyst. 

They were still limited amidst the increasing United States treasury obligation result. It comes together with the general positive opinion around the equity market.

That’s maybe will limit the further increase for the XAU/USD. The US government obligation yield result with the 10-year tenor was stable enough near the 1.70% limit. 

The Stimulus May be Given

The achievement above was the highest level since May amidst the tightening policy expectation made by the Fed. There is one more thing to be highlighted. 

The FOMC meeting minutes released last week reaffirmed that the America’s central bank is still on their track to give the pandemic era stimulus again at the end of this year. 

Based on the rumor, the amount will be huge. The market has been also predicting the possibility of the interest rate increase in 2022 or next year. 

That was happened in the middle of the concern where the inflation may be increasing faster than the expectation. That situation triggers the effect. 

Bank of Japan Discuss the Termination of Loans

The situation above or a concern about the inflation increase is having a contribution to the new step up happened lately. It is especially for the obligation yield result. 

Meanwhile, the report showed that Bank of Japan is discussing to stop the COVID-19 termination of loans in certain condition. What is that situation? 

It is especially if the infection rate in that country continues to decrease. Aside from that, the Bank of England officials have been giving a signal about the raising interest rate. 

That will be happened as soon as possible this year. At last, this will become the holder factor for the gold commodity which doesn’t give the yield result. 

The Global Risk Sentiment Gets a Support 

Basically, the overall conditions happened so far guarantee the carefulness of the market participants before they place the aggressive bullish bet amidst the risk-on nuance. 

For your information, that nuance is so dominant in the market. Meanwhile, the global risk sentiment gets a support amidst the decreasing concern about the credit crisis in the Chinese real estate sector. 

The China evergrande group provided the fund on Thursday for the obligation coupon. Before, it will be ended on 23 of September and avoided the default. 

Furthermore, the group noted that they cannot guarantee that they will be able to fulfill the financial obligation based on the contract made. It becomes a key factor that supports the gold 

Meanwhile, the US Dollar Is Weakening 

The US dollar is observed to weaken against commodity currencies, the AUD / USD pair is currently in the range of 0.7486 or strengthened 0.28 percent.

Meanwhile, the NZD / USD is in the range of 0.7164 or strengthened by 0.21 percent. Elsewhere, the Euro gained momentum on the weakening of the dollar so far. 

The pair of EUR / USD moved in the range of 1.1664 or sstrengthened by.16 percent from the daily open price. The Fed Chairman Jerome Powell on Friday said the tapering off program should begin immediately. 

However, Powell noted that it is not the right time yet to rais the rates as the Fed still assesses that the surge in inflation that occurred in recent months is only temporary. 

Reiterating Powell's remarks, U.S. Treasury Secretary Janet Yellen on Sunday said the U.S. inflation rate is likely to return to normal in the second half of next year.