Breaking News: Gold Price Plummets as USD Surges
- Gold price drops to a multi-week low as the USD reaches a four-month high.
- The Trump trade resurgence after initial US election exit poll results.
- Surging US bond yields and risk-on sentiment contribute to XAU/USD decline.
The Gold price (XAU/USD) faces significant selling pressure in the European session, falling to around $2,700, marking a nearly three-week low. The lead in the US presidential race by Republican nominee Donald Trump and the potential for him to win triggers a sharp rally in the US Dollar (USD), leading to aggressive selling of the commodity.
Additionally, concerns over deficit spending and expectations for a less aggressive Federal Reserve (Fed) easing push US Treasury bond yields higher, diverting funds from Gold. The risk-on sentiment, indicated by a strong rally in US equity futures, further suggests downward pressure on XAU/USD, a safe-haven asset.
Market Analysis: Factors Affecting Gold Price Movement
- The USD surges to a four-month high following US election exit polls favoring Trump.
- Republican control projected in the US Senate, impacting bond yields and market sentiment.
- Uncertainty reduction post-election results triggers a risk-on trade wave.
- Geopolitical tensions, like Iran’s retaliatory plans, have minimal impact on Gold prices amid other market dynamics.
Technical Insights: Gold Price Support and Resistance Levels
From a technical standpoint, the $2,725-2,720 range acts as strong support, with potential for further decline below this level. A break could see XAU/USD testing sub-$2,700 levels, aligning with a short-term ascending trend channel from late July. Further support lies near $2,675 and $2,657-2,655.
On the upside, resistance near $2,748-2,750 could lead to a push towards the trend-channel hurdle around $2,780-2,785. A breakthrough the $2,800 mark could signal a continuation of the uptrend.
US Dollar Performance Today
The US Dollar (USD) has shown strength against major currencies today, with notable gains against the Euro. The table below illustrates the percentage changes:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | +1.76% | +1.20% | +1.65% | +0.57% | +1.41% | +1.17% | +1.12% | |
| EUR | -1.76% | -0.54% | -0.08% | -1.16% | -0.35% | -0.59% | -0.63% | |
| GBP | -1.20% | +0.54% | +0.44% | -0.62% | +0.20% | -0.05% | -0.09% | |
| JPY | -1.65% | +0.08% | -0.44% | -1.05% | -0.23% | -0.49% | -0.52% | |
| CAD | -0.57% | +1.16% | +0.62% | +1.05% | +0.83% | +0.58% | +0.53% | |
| AUD | -1.41% | +0.35% | -0.20% | +0.23% | -0.83% | -0.25% | -0.30% | |
| NZD | -1.17% | +0.59% | +0.05% | +0.49% | -0.58% | +0.25% | -0.04% | |
| CHF | -1.12% | +0.63% | +0.09% | +0.52% | -0.53% | +0.30% | +0.04% |
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