Gold remains in the negative despite minor USD strength the 50-day SMA holds the key for bulls.
Gold price (XAUUSD) adds to last week’s hefty losses and is under selling pressure for the second consecutive day on Monday. The excitement about Donald Trump’s expected expansionary policies helps the US Dollar (USD) to maintain stable below a four-month high reached last week and turns out to be a crucial factor hurting the commodity. Apart from that, a pleasant tone The volatility in US equities futures leads to a shift away from safe-haven precious metals.
Meanwhile, predictions that Trump’s plans will raise economic growth and inflation while limiting the Federal Reserve’s (Fed) ability to quickly decrease interest rates have kept US Treasury bond yields elevated. This, in turn, puts more pressure on the non-yielding gold price. Bearish traders, on the other hand, may choose to remain on the sidelines ahead of the release of US consumer inflation data on Wednesday and speeches by a number of FOMC members, including Fed Chair Jerome Powell, on Friday.
Daily Market Movers: Gold price has had its sharpest weekly loss in over five months, despite a little increase in the US dollar.
It remains susceptible near a multi-week low Following Donald Trump’s victory in the presidential election, the US dollar rallied broadly, and US Treasury bond yields rose sharply.
The so-called Trump trade optimism continues to operate as a tailwind for the Greenback, putting downward pressure on the gold price for the second day in a row on Monday, despite the buoyant attitude in the equity markets.
Last week, the Federal Reserve slashed its benchmark overnight borrowing rate by 25 basis points and signaled plans to soften monetary policy further, with traders still pricing in a 65% chance of another rate cut in December.
Minneapolis Fed President Neel Kashkari stated that the central bank wants to have confidence and needs further proof that inflation will continue to rise Following Donald Trump’s victory in the presidential election, the US dollar rallied broadly, and US Treasury bond yields rose sharply.
The so-called Trump trade optimism continues to operate as a tailwind for the Greenback, putting downward pressure on the gold price for the second day in a row on Monday, despite the buoyant attitude in the equity markets.
Last week, the Federal Reserve slashed its benchmark overnight borrowing rate by 25 basis points and signaled plans to soften monetary policy further, with traders still pricing in a 65% chance of another rate cut in December.
Minneapolis Fed President Neel Kashkari stated that the central bank wants to have confidence and needs further proof that inflation will continue to rise.
