Gold Retreats as Trump Victory Bolsters USD

Gold prices tumbled over 3% to 2650 USD per troy ounce amid a surging US dollar, influenced by Donald Trump’s definitive win in the US presidential election.
RoboForex | vor 14 Tagen

By RoboForex Analytical Department

Gold prices tumbled over 3% to 2650 USD per troy ounce amid a surging US dollar, influenced by Donald Trump’s definitive win in the US presidential election. As of Thursday, gold prices are holding steady near three-week lows, reflecting ongoing pressure from a robust dollar.

Market anticipation has shifted, with investors expecting a more conservative approach from the Federal Reserve to interest rate cuts. Trump’s victory, perceived as pro-inflation due to his protectionist policies, could prompt the Fed to maintain higher lending rates to counter potential inflation spikes, diminishing the appeal of non-yielding assets like Gold.

Today’s focus is squarely on the Fed’s interest rate decision, which is anticipated to bring a 25-basis-point cut. This has been priced into the market, influencing the current Gold prices.

Gold’s future movements will hinge heavily on the Fed’s commentary and subsequent rate decisions. While rates are projected to decrease, the pace and extent of these cuts will be critical for Gold’s appeal.

Technical analysis of XAUUSD

Gold’s market dynamics recently peaked at 2790.00, after which a consolidation range formed below this level. Exiting this range downward opened the pathway for a significant correction, with Gold forming its initial corrective wave. The immediate downside target is 2617.40, potentially extending to 2575.75 if the downward trajectory persists. The MACD indicator supports this bearish outlook, with its signal line trending sharply downward below zero, suggesting further declines.

The hourly chart outlines a developing downward wave aiming for 2635.65. Should this target be met, a corrective rally to 2683.11 could occur before further declines resume towards 2617.17, marking the primary target in this bearish phase. The Stochastic oscillator indicates potential for short-term upside, with its signal line approaching the 80 level, suggesting a brief corrective uptick before continuing its descent.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

read more
Gold Gain on Russia-Ukraine Tension

Gold Gain on Russia-Ukraine Tension

Gold extended its rally for a third consecutive session this week, gaining nearly 3% since Monday as the intensifying conflict between Russia and Ukraine drove safe-haven demand. Tensions escalated after Ukraine deployed U.S.-supplied missiles, prompting Russian President Putin to approve the use of nuclear deterrents in response.
PU Prime | vor 1 Tagen
Markets Steady as Bitcoin Hits $90K, Gold Rebounds

Markets Steady as Bitcoin Hits $90K, Gold Rebounds

The Dollar Index held steady as markets priced in U.S. election outcomes, with attention shifting to upcoming U.S. economic data, including housing figures, weekly jobless claims, and Friday's PMI reports. These updates could reveal corporate sentiment and insights into potential trade tariffs under President Trump, shaping the economic outlook.
PU Prime | vor 3 Tagen
Initial Jobless Claims Fuels Dollar

Initial Jobless Claims Fuels Dollar

The spotlight was on the U.S. job data yesterday, with the dollar strengthening following the upbeat Initial Jobless Claims, which came in at their lowest level since May.
PU Prime | vor 6 Tagen
Gold Falls for the Fifth Consecutive Trading Session

Gold Falls for the Fifth Consecutive Trading Session

On Thursday, the price of a troy ounce of Gold is lower, approaching 2,560.00 USD. The current value of Gold is at an eight-week low, influenced by the strong US dollar. The market analyses the latest inflation statistics released in the US and draws rather ambitious conclusions.
RoboForex | vor 7 Tagen