Gold Daily | Spot Gold Hits Eight-Week Low Amid Strong Dollar and Rising U.S. Treasury Yields
Thursday, Nov 14, 2024 7:00 am ET
1min read 【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.
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.
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.