Gold pushes higher despite Middle East ceasefire, buoyant US Dollar
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Gold price remains unchanged at $2,625, held back by a mix of geopolitical developments and stronger US Dollar. Trump threatens tariffs on Canada, Mexico, and China, boosting the Greenback and raising fears of a global trade war. Ceasefire optimism between Israel and Hezbollah dampens Gold’s appeal as a safe-haven asset. Gold prices remain stuck at around $2,625 for the second straight day, even though US President Donald Trump threatened to impose tariffs on three of its major trading partners in a post on his social media platform. Usually, the golden metal should rise on geopolitical uncertainties, but a de-escalation in the Middle East conflict poured cold water on the precious metal. The XAU/USD trades at $2,625, virtually unchanged. Meanwhile, the latest Federal Open Market Committee (FOMC) minutes were released. They hinted that the Federal Reserve could pause reducing rates and hold them at around restrictive levels if inflation remains elevated. Trump’s intentions to impose tariffs on Canada, Mexico, and China boosted the Greenback, ramping up fears of a global trade war. Bullion’s collapse on Monday was exacerbated by Israel and Hezbollah ceasefire optimism and pressured by the nomination of Scott Bessent as US Treasury Secretary for Trump’s upcoming administration. This improved risk appetite, denting demand for Gold’s safe-haven status. Nevertheless, Gold’s losses were capped if not by the escalation of the Ukraine-Russia conflict. This prevented XAU/USD from falling beneath $2,600 a troy ounce, even though the Greenback recovered some ground. Data-wise, the US economic docket featured the release of the Conference Board (CB) Consumer Confidence in November, which exceeded estimates and October’s number, Ahead this week, the US economic docket will feature Durable Goods Orders, Initial Jobless Claims, and the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index. Daily digest market movers: Gold prices fluctuate at around…
Filed under: News - @ November 26, 2024 11:24 pm