Gold Under Pressure From Multiple Fronts
Gold is under pressure on multiple fronts, with institutional selloffs pushing it down nearly 3% since Monday, says Dilin Wu at Pepperstone.
"The trading narrative has shifted sharply from risk-off hedging to an 'America First' stance." The SPDR Gold Trust and other major institutions have been unloading holdings since November, while central banks have slowed gold purchases, the strategist says. That's making gold's near-term outlook seem bleak. If U.S. CPI and retail sales this week beat views, the USD Index could tighten the screws further, Wu adds. Trump's tapping of trade hawk Lighthizer has also fueled expectations of stricter tariffs, stronger USD and rising inflation that could make the Fed hesitant to cut rates, creating more headwinds for gold, Wu says.
Source : Dow Jones Newswires
