Gold Price Consolidates Heavy Intraday Losses
Gold price (XAU/USD) maintains its heavily offered tone through the first half of the European session on Monday. Scott Bessent's nomination as US Treasury Secretary clears a major point of uncertainty for markets. This, along with reports that Israel was close to reaching a ceasefire with the military group Hezbollah in Lebanon, boosts investors' confidence and turns out to be a key factor undermining demand for the safe-haven precious metal.
Moreover, expectations that US President-elect Donald Trump's proposed policies could reignite inflation and limit the scope for the Federal Reserve (Fed) to cut interest rates act as a tailwind for the US Dollar (USD). This exerts additional pressure on the non-yielding Gold price. Meanwhile, Bessent is expected to take a more phased approach to tariffs in an attempt to rein in the budget deficit. This, in turn, offers some respite to bond investors and triggers a sharp decline in the US Treasury bond yields, which offers some support and helps limit the downside for the XAU/USD.
RECOMMENDATIONS
- Buy if the price moves at least at $2,676
- Sell if the price moves at least around $2,666
Resistance Level 2: $2,689
Resistance Level 1: $2,682
Support Level 1: $2,660
Support Level 2: $2,653
DISCLAIMER
Note: This article is only an analysis and not a definitive reference. Always pay attention to developments in fundamental and technical aspects in transactions before making investment decisions.
Source : newsmaker.id
