Gold Price Continues to Attract Buyers Amidst Geopolitical Tensions
- Gold price (XAU/USD) remains on an upward trend for the third consecutive day, reaching $2,635-2,636.
- Geopolitical tensions between Russia and Ukraine drive investors towards safe-haven assets like gold.
- The possibility of further escalation of the conflict supports the precious metal, albeit concerns about a full-blown nuclear war ease.
Factors Influencing Gold Price Movement
- Investors anticipate economic growth under President-elect Donald Trump’s policies, which could limit potential rate cuts by the Federal Reserve.
- Rising US Treasury bond yields boost the USD demand, affecting the non-yielding nature of gold.
- Traders await speeches by influential FOMC members for insights into future rate adjustments.
Current Market Dynamics
- Russian President Putin approves an updated nuclear doctrine, raising concerns about nuclear weapon usage.
- Ukraine conducts missile strikes in Russia, escalating tensions further.
- Traders prepare for potential tariffs and tax cuts under the incoming Trump administration, impacting inflation and interest rate expectations.
Technical Analysis and Price Outlook
The Gold price shows signs of recovery from recent lows, potentially targeting the $2,658-2,660 region and beyond.
- Bullish indicators suggest a positive intraday movement towards $2,700 if buying momentum continues.
- Support levels at $2,622-2,620 and $2,600 may prevent immediate downside risks.
- A break below $2,600 could lead to further declines towards the 100-day SMA around $2,555.
US Dollar Strength Against Major Currencies
The US Dollar remains strong against major currencies, with notable changes in value against the Japanese Yen.
For a detailed breakdown of the percentage changes in USD value against other major currencies, refer to the table below:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | -0.08% | 0.25% | -0.04% | 0.09% | 0.05% | 0.10% |
Understanding these currency movements can provide valuable insights into global economic trends and market dynamics.