Recent US labour data showed hiring and wages are trending lower and approaching levels that are consistent with overall the Fed’s inflation target of 2%. These trends are likely to continue as the Fed’s restrictive policy flows through to the economy. Therefore, we believe that US rates have peaked. 

US ISM Services PMI data confirm that underlying demand in the US is softening. This builds a case for declining UST yields and a moderating DXY, which is supportive for Gold investment demand.