Gold
Gold prices show little movement in early Thursday trading, extending the lacklustre momentum observed over the past two weeks. During this period, bullion prices have remained within a relatively narrow range, finding support at $2,620 and facing resistance at $2,660. This price stability reflects a balance of conflicting market forces. On one hand, geopolitical instability remains abundant. The situation in Ukraine continues to deteriorate with further Russian advances, a fragile ceasefire persists between Israel and Hezbollah, and unsettling political developments unfold in France and South Korea. These factors would typically drive significant gains in gold, given its status as a haven asset. On the other hand, the prospect of the incoming US administration pursuing a protectionist agenda is shifting market dynamics. Such policies are expected to drive inflation higher, prompting the Federal Reserve to maintain elevated interest rates for a prolonged period. As a result, treasury yields are rising, lending strength to the dollar and effectively capping gold’s upside potential.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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