Gold fluctuates in a range due to conflicting fundamental signals.
During Monday’s early European session, the price of gold (XAUUSD) fluctuates in a range around $2,630 as it tries to build on last week’s slight recovery from a one-month low. As a major element operating as a tailwind for the commodity, the US Dollar (USD) bulls still on the defensive below a two-year high that was touched on Friday.
Geopolitical uncertainties continue to support the XAUUSD.
In addition, geopolitical threats originating from tensions in the Middle East and the protract conflict between Russia and Ukraine, which further strengthen the safe-haven precious metal.
The Federal Reserve’s (Fed) hawkish signal, which states that it will slow rate decreases in 2025, continues to sustain high yields on US Treasury bonds. This appears to limit advances for the non-yielding yellow metal, as does the generally upbeat mood surrounding the equity markets. Therefore, it would be wise to hold off on making any further appreciating moves until there is a significant follow-through buying. The Conference Board’s Consumer Confidence Index now anticipated by traders as a short-term boost.
Daily Market Update:The Fed hawkish signal and rising US bond yields make it difficult for the price of gold to rise.
The US dollar declined from its peak of two years on Friday after the US Personal Consumption Expenditure (PCE) Price Index released, indicating that inflation was slowing down.
According to the US Bureau of Economic Analysis (BEA), the PCE Price Index, which measures inflation in the US, increased slightly from 2.3% to 2.4% annually in November.
The core PCE Price Index, which does not include volatile food and energy costs, increased 2.8% over the period under review. This was in line with October’s figure but fell short of the 2.9% forecast.
In addition, Personal Income gained 0.3% last month after a steep decline from 0.7% in October, while Consumer Spending increased 0.4% following a downwardly revised result of 0.3% in October.
Vladimir Putin, the president of Russia, promised reprisal when Ukraine staged a significant The city of Kazan experienced a drone attack.
Vladimir Putin, the president of Russia, promised reprisal when Ukraine staged a significant The city of Kazan experienced a drone attack that caused damage to residential structures and caused the airport to close.
At least seven Palestinians were killed as Israeli forces struck the so-called “safe zone” in southern Gaza, setting tents on fire and bringing the total number of fatalities from the previous day to at least 50.
The benchmark US Treasury bond yield hit its highest level in over six months last week as the Fed indicated that it might decrease the pace of rate cuts in 2025.
The Conference Board’s Consumer Confidence Index, which is release on Monday, could provide the US economy some boost later in the early North American session.
