Gold price regaining its upward momentum a little decline in US bond yields coincides with the gold price regaining its upward momentum.
Despite its slight intraday gain, the price of gold (XAUUSD) is still up more than 0.25% for the day and remains in the $2,669–$2,670 range through the first part of Tuesday’s European session.
The USD bulls favored by hawkish Fed predictions, which should cap the precious metal.
In response to news that US President-elect Donald Trump’s top economic advisers are considering a gradual increase in tariffs to avoid a sharp surge in inflation, US Treasury bond yields fall from more than a year-high peak As a result, the US Dollar (USD) declines from a two-year high and provides some assistance to the precious metal.
Nevertheless, a number of factors work together to control the price of gold. Investor confidence increased when concerns about disruptive trade tariffs under Trump 2.0 allayed. Additionally, expectations for a slower pace of interest rate decreases this year were strengthened by the positive US Nonfarm Payrolls (NFP) report that was released Friday. The USD and US bond yields should benefit from this, which is preventing traders from making strong bullish wagers on the non-yielding yellow metal. For a new boost, investors now turn to the US Producer Price Index (PPI).
Daily Market Update:With a risk-on attitude and expectations for a slower Fed rate, gold price bulls appear uncommitted rate cut.
According to Bloomberg, which cited people with knowledge of the situation, President-elect Donald Trump’s economic advisors are thinking about implementing a plan to raise tariffs incrementally each month.
The strategy, which aims to increase bargaining power and prevent an unexpected increase in inflation, causes a slight decline in the yields on US Treasury bonds and boosts demand for gold.
The US dollar’s decline from more than a two-year high on Monday halted by the hot US job report, which solidified predictions that the Fed will approach cautiously when lowering rates this year.
The Fed’s hawkish stance should also prevent any additional gains for the non-yielding yellow metal and limit the corrective decline of benchmark 10-year US Treasury bond yields from a 14-month high. .
After taking office next week, US President-elect Donald Trump has stated that he will meet with Russian President Vladimir Putin “very quickly” and has made repeated promises to put an end to the crisis in Ukraine.
The US indicated that a ceasefire deal is on the brink of success while Hamas said talks are progressing well. Two Israeli officials said that Hamas will release 33 hostages in the first phase of the ceasefire agreement.
Investors now look forward to key inflation prints – starting with the Producer Price Index later today, followed by the US consumer inflation figures on Wednesday – for some meaningful impetus.
