GOLD --> The Downtrend Persists. What’s the Next Target?Dear Friends,
Gold has seen a modest rise amidst a broader bearish trend, currently trading around $2,617, up 1.27% on the day.
This slight uptick can be attributed to sellers pausing their pressure, coupled with the fundamental appeal of gold increasing. As the opportunity cost of holding the non-yielding precious metal decreases due to lower interest rates, gold becomes more attractive.
However, the Federal Reserve's cautious outlook on rate cuts—suggesting smaller reductions than expected next year—could weigh on gold's upward momentum.
Additionally, US Treasury yields edged higher on December 18, with the 10-year yield reaching its highest level since May. Treasuries, often considered a direct competitor to gold due to their interest-bearing nature, could diminish gold's appeal if yields continue to rise.
Ben personally advises waiting for a decisive candle close below the 2636 liquidity zone before taking further advantage of the market trend.
