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Gold Daily | Gold Prices Drop Nearly 1% Amid Stronger Dollar and Bearish Market Sentiment

AInvestMonday, Dec 2, 2024 7:00 am ET
1min read
【Latest Gold Price and Recent Trends】

The international gold price has dropped nearly 1% to $2628 per ounce due to a stronger dollar and profit-taking. Investors are looking at key U.S. economic data that could influence the Federal Reserve's monetary policy outlook.

【Technical Analysis】

The recent technical analysis suggests a bearish trend for gold, with resistance at $2649 and support at $2621. The Relative Strength Index indicates bearish momentum, with potential testing of lower support levels at $2610 and $2597.

【Market Sentiment and Economic Background】

The strengthening dollar, driven by President-elect Trump's tariff threats against BRICS countries, has pressured gold. This backdrop, coupled with easing geopolitical tensions, has cooled safe-haven demand for gold. Meanwhile, the market is anticipating the U.S. non-farm payroll data, which could further impact the Fed's policy direction and gold's price.

【Analyst Opinions】

Analysts suggest that if the Federal Reserve clearly signals an intention to maintain interest rates through 2025, gold prices might face additional downward pressure. The forecast for key U.S. economic indicators this week, including the ISM Manufacturing PMI, could either bolster the dollar further or provide some support for gold, depending on the results. High rates generally reduce the allure of non-yielding assets like gold.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.