GOLD | Reversing to the downside, support factors still remain
MARKET FORECAST AHEAD OF THE WEEK:
XAUUSD
- US Treasury yields have fallen in the past few days, putting pressure on the US dollar
- Meanwhile, gold prices breached key technical levels on the way higher
- Several high-impact events are expected in the coming days, with a shorter trading week in the US due to the Thanksgiving holiday.
US Treasury yields fell sharply last week after lower-than-expected US inflation data coupled with a rise in US unemployment claims all but ruled out the possibility of a central bank The US continues to tighten monetary policy, giving traders the green light to start pricing in more aggressive interest rate cuts. for the next year.
The broader US dollar previously fell nearly 2%, with the DXY index sliding to its lowest since early September. Benefiting from falling rates and a falling US dollar, the precious metal rose more than 2%. .0% for the week, moving closer to reclaiming the psychological threshold of $2000.
Looking ahead, the US economic calendar will be devoid of important figures in the coming days, with a shorter trading week due to the Thanksgiving holiday. The absence of prominent events could mean a consolidation of recent market volatility, paving the way for a deeper decline in yields and the US dollar. This, in turn, could lead to further price increases for precious metals and risk assets.
XAUUSD
- US Treasury yields have fallen in the past few days, putting pressure on the US dollar
- Meanwhile, gold prices breached key technical levels on the way higher
- Several high-impact events are expected in the coming days, with a shorter trading week in the US due to the Thanksgiving holiday.
US Treasury yields fell sharply last week after lower-than-expected US inflation data coupled with a rise in US unemployment claims all but ruled out the possibility of a central bank The US continues to tighten monetary policy, giving traders the green light to start pricing in more aggressive interest rate cuts. for the next year.
The broader US dollar previously fell nearly 2%, with the DXY index sliding to its lowest since early September. Benefiting from falling rates and a falling US dollar, the precious metal rose more than 2%. .0% for the week, moving closer to reclaiming the psychological threshold of $2000.
Looking ahead, the US economic calendar will be devoid of important figures in the coming days, with a shorter trading week due to the Thanksgiving holiday. The absence of prominent events could mean a consolidation of recent market volatility, paving the way for a deeper decline in yields and the US dollar. This, in turn, could lead to further price increases for precious metals and risk assets.
