We are seeing a continuation of the downward trend in the precious metals market today, with gold (GOLD) settling nearly 1% below $2,600 per ounce today. The declines are directly attributable to the strengthening of the dollar, with the USDIDX index rising above 106 today, and yields, with 10-years treasuries gaining today more than 12 basis points, rising to 4.45% level. The declines in gold are due to the prolonged 'Trump Trade'. The Republicans' and Trump's agenda is likely to put more pressure on the Fed with higher Fed rates in 2025.
- Recent data including the NY Fed survey from today suggest an improving outlook around the health of the US economy and consumers. Another aspect to geopolitics, where, at least in the short term, investors see more encouraging circumstances, suggesting a decrease in tensions in the Middle East or between Washington and Beijing, among others.
- Also, a return to peace talks between Ukraine and Russia, at the turn of the year or early 2025, is not out of the question. Geopolitics, however, is the broader backdrop for the gold market, not a factor in today's sell-off. Palladium (PALLADIUM) is also losing more than 4% today; a pullback is seen in silver (SILVER).
GOLD (H1 interval)
Looking at the hourly chart, we see that gold has broken out of the upward price channel at the bottom and is testing levels from the second half of September.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appSource: xStation5
Gold is one step closer to test a lower band of the medium-term price channel at 2580 USD per ounce; RSI signals close to oversold conditions near 38, however EMA200 is still much lower, now at $2440.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
