Gold Prices Weaken Near Lows on Stronger USD
Gold prices slumped near two-month lows on stronger USD, rising US bond yields Gold prices (XAU/USD) continued to weaken for the fifth straight day and fell to the lowest level since September 19, around the $2,559-2,558 region as US Dollar (USD) buying continued throughout the Asian session on Thursday (14/11). Expectations that US President-elect Donald Trump’s policies will spur growth and stimulate inflation, and force the Federal Reserve (Fed) to pause its easing cycle, continued to support high US Treasury bond yields. This, in turn, lifted the USD to its highest level since November 2023 and continued to weigh on the commodity.
Furthermore, the US Consumer Price Index (CPI) report released on Wednesday showed slower progress in lowering inflation, which could lead to fewer interest rate cuts next year. This, coupled with the recent strong rally in the US equity markets, contributed to driving some outflows from the non-yielding Gold and supports prospects for further downside momentum. Traders now look forward to the release of the US Producer Price Index (PPI) for near-term opportunities, although focus would remain on Fed Chair Jerome Powell’s speech later in the US session.
Source: FXStreet
