Gold
Gold prices are edging lower in early Monday trading, pressured by rising Treasury yields and a strengthening US dollar. Traders are increasingly focused on the likelihood of the Federal Reserve maintaining higher interest rates for longer, a dynamic supporting the dollar and Treasury yields while weighing on the appeal of the non-yielding precious metal. The prospect of the incoming Trump administration triggering a trade war that could reignite inflation, combined with the robust performance of the US economy, further reinforces expectations that the central bank will slow the pace of rate cuts. This week’s economic calendar could offer additional insight into the Fed’s likely trajectory. Strong PMI and labour market data would likely bolster the current narrative, exerting further pressure on gold prices. Conversely, weaker-than-expected readings might challenge these expectations, providing potential support for bullion.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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