Gold Daily | Spot Gold Hits Eight-Week Low Amid Strong Dollar and Rising U.S. Treasury Yields

【Latest Gold Price and Recent Trends】

Gold prices have dropped for the fifth consecutive day, hitting an eight-week low due to a stronger dollar and rising U.S. Treasury yields. The price of spot gold is now below $2,550 per ounce, experiencing a nearly 7% decline since November 6.

【Technical Analysis】

Analysts predict further decline with key support at $2,513.10. If the price drops below $2,529, it may target $2,500. Resistance is at $2,604, and a break above could signal a rebound. The RSI indicates bearish momentum, and prices are approaching oversold territory.

【Market Sentiment and Economic Background】

The market anticipates fiscal policies from the incoming Trump administration, such as tariffs and tax cuts, which are expected to increase inflation and support higher Treasury yields. The dollar has reached a year-high, making gold more expensive for international buyers. Recent U.S. CPI data has shown a slowdown in inflation reduction, which may impact the Federal Reserve’s rate cut expectations, currently priced at a 25 basis point reduction in December.

【Analyst Opinions】

Analysts emphasize watching upcoming U.S. PPI data and Fed Chair Powell’s speech, as these could provide more insights into the Fed's policy direction. Despite the potential for rate cuts, the strong dollar and rising yields continue to pressure gold prices. Some analysts view any short-term pullbacks as opportunities to enter long positions on the dollar, given its current favorable economic conditions.