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💡GOLD: Overwhelmed by the strength of the USD

Updated

This morning, the global gold prices extended their drop, as spot gold decreased by 8.8 USD to reach 1,968.7 USD per ounce. Gold futures were last recorded at 1,973.5 USD per ounce, marking a 15.1 USD drop compared to yesterday's morning prices.

The resurgence of the USD during the evening trading session on November 7 reduced gold's attractiveness to buyers using different currencies.

Investors are eagerly awaiting a series of upcoming speeches by officials from the US Federal Reserve (Fed) this week, with particular anticipation for Fed Chairman Jerome Powell's address scheduled for Wednesday and Thursday.

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Based on the CME FedWatch tool, investors are highly confident that the Fed will maintain the current interest rates during its December meeting, with a 90% probability. Furthermore, they also anticipate a significant 80% likelihood that the Fed will implement a rate cut as early as June next year.

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As per the World Gold Council analysts, while October marked a historic month for the gold market with record-breaking closing prices, it is evident that additional catalysts are required to generate a sustained upward momentum in the market.

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Gold is starting to have a slight rebound on the H1 frame, but you can see that the current upward momentum of gold is quite weak, it is unknown whether it will find the resistance area we observed around 1985 or not. Are not.

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💡 XAUUSD: The downward momentum has not stopped

Stone_Haven

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