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Indonesia News Portal for Traders | Financial & Business Updates

14 October 2024 15:41  |

Gold rise to one-week high, looks set to continue rallying

Gold (XAU/USD) prices turned positive for the third straight day on Monday and rose to $2,667, or over a one-week high during the early European session on Monday. Expectations that the Federal Reserve (Fed) will continue to cut interest rates amid a favorable inflation outlook turned out to be a key factor driving flows towards the non-yielding yellow metal. Moreover, escalating geopolitical tensions in the Middle East provided additional support to the safe-haven bullion.

 

Meanwhile, US Treasury yields and the US Dollar (USD) remained elevated amid rising bets for less aggressive policy easing by the US central bank. This, along with a generally positive risk tone and optimism over China’s pledge to raise debt to revive its economy, might cap further upside for the safe-haven Gold prices. This, in turn, warrants caution for bullish traders and before positioning for any further appreciating move amid a partial holiday in the US.

 

Source : FXSyreet

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