Gold prices fell as the U.S. dollar and bond yields remained strong. Despite a recent run-up, gold struggled due to the dollar and yields holding steady amid cooling U.S. economic activity. Expectations of prolonged higher rates limited investor interest, as labor and inflation data pointed to the Fed maintaining restrictive policy.
Gold futures' December contract on Comex settled down 0.7% at $1,952.60/ounce, and spot gold dropped 0.6% to $1,927.15/ounce.
Markets are focused on a series of Federal Reserve speakers this week, anticipating insights into monetary policy. Despite some weak economic data, the Fed is expected to continue with higher rates due to sticky inflation and a stable labor market. Higher rates typically weigh on gold prices.
The prospect of a soft U.S. economic landing reduced gold's safe-haven appeal. Given rising rates and attractive government bond yields, investors might be less inclined to allocate resources to gold. The current economic situation doesn't align with gold's traditional role as a safe haven, as discussed in upcoming articles anticipating a Q4 market upswing.
On the technical side, RSI is neutral, but MACD is still showing a BUY signal, although its histogram is decreasing.
If the price keeps falling, it might reach a support level of 1907.07, if the trend reverses, the bulls are expected to start entering at 1930.05 and the price might reach levels of 1943.96.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
Gold futures' December contract on Comex settled down 0.7% at $1,952.60/ounce, and spot gold dropped 0.6% to $1,927.15/ounce.
Markets are focused on a series of Federal Reserve speakers this week, anticipating insights into monetary policy. Despite some weak economic data, the Fed is expected to continue with higher rates due to sticky inflation and a stable labor market. Higher rates typically weigh on gold prices.
The prospect of a soft U.S. economic landing reduced gold's safe-haven appeal. Given rising rates and attractive government bond yields, investors might be less inclined to allocate resources to gold. The current economic situation doesn't align with gold's traditional role as a safe haven, as discussed in upcoming articles anticipating a Q4 market upswing.
On the technical side, RSI is neutral, but MACD is still showing a BUY signal, although its histogram is decreasing.
If the price keeps falling, it might reach a support level of 1907.07, if the trend reverses, the bulls are expected to start entering at 1930.05 and the price might reach levels of 1943.96.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.