Gold
Gold prices are trading flat as European trading opens, following a dip to a two-month low in the previous session. This week, bullion is on track for its steepest drop since June 2021, falling over 4% and more than 8% from late October's all-time highs. The decline stems from a surge in risk appetite after the Republican win in the US presidential elections, which sparked a stock market rally and dampened demand for gold. Additionally, the incoming administration's protectionist stance, entailing substantial import tariff increases, is fueling inflation fears, strengthening the dollar, and boosting Treasury yields, pressuring the non-yielding precious metal. Recent US inflation data showing an uptick, and hawkish Federal Reserve comments have added to gold's challenges. The critical question now is whether the $2,660 support level will hold.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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