icon
icon
icon
icon
Upgrade
icon

Gold Daily | Gold Stabilizes at $2,660 Amid Strong Dollar and Anticipated Fed Rate Cut

AInvestThursday, Nov 7, 2024 7:00 am ET
1min read
【Latest Gold Price and Recent Trends】

The international gold price has currently stabilized around $2,660, following a sharp decline hitting a three-week low of $2,643.32. The price drop is attributed to a strong dollar after Donald Trump's win in the U.S. presidential election and expected Fed rate cut.

【Technical Analysis】

Gold's price hovers near a critical support level of $2,643.35. A breach could lead to a further fall towards $2,625.49 and $2,605.20, while the immediate resistance is at $2,683.93. Despite the bearish trajectory, oversold indicators suggest potential short-term rebounds if gold maintains above $2,643.35.

【Market Sentiment and Economic Background】

The dollar's rise, driven by market optimism following Trump's election win, and robust U.S. economic data, have reduced gold's appeal as a safe haven. Reports indicate a resilient U.S. economy, particularly in the service sector, which further pressures gold prices. Investors are closely watching the Fed's rate decision, with a 25 basis point cut anticipated. Trump's policies could spur inflation, potentially conflicting with the Fed's efforts to control it.

【Analyst Opinions】

Some analysts believe Trump's fiscal expansion policies may ultimately support gold prices by amplifying inflationary pressures, potentially delaying further rate hikes. Short-term, gold faces pressure from a stronger dollar, but accelerated inflation may prompt investors to return to gold as a hedge. In the medium-term, forecasts suggest gold could recover if geopolitical or economic uncertainties rise again.
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.