Gold price eyes more upside amid light trading on Thanksgiving Day after dovish US Federal Reserve minutes and weak United States data down the US Dollar and US Treasury bond yields, FXStreet’s Dhwani Mehta reports.

United States data, Federal Reserve minutes smash USD

“The US Dollar and US Treasury bond yields are reeling from the pain inflicted by the dovish US Fed November meeting minutes and discouraging top-tier US economic releases. The highly-influential United States events almost sealed in a 50 basis points (bps) rate hike by the Fed in December, triggering a sharp sell-off in the USD alongside the US Treasury bond yields while powering the upswing in XAU/USD. Lower rates tend to benefit the non-interest-bearing Gold price.”

“The market sentiment remains cautiously optimistic, as the Federal Reserve’s dovishness overshadows China’s covid concerns, as traders from the United States move on the sidelines to celebrate Thanksgiving Day.”