Gold prices edged higher today, with XAU/USD trading at $1992 as the US market observed Thanksgiving, resulting in lower trading volumes. The precious metal found support in the decline of US Treasury bond yields and the weakness of the US dollar, holding its ground within the tight range of $1990-$2000.
Since the beginning of November, US bond yields have significantly decreased, dropping over 6% or nearly 30 basis points. Simultaneously, the US dollar has exhibited a noticeable decline against major currencies, with the DXY index falling from above 106 to below 104, indicating a nearly 3% decrease.
Earlier this week, gold swiftly surpassed the $2000 mark and has since remained near that level. This performance occurs even as market participants brace for the upcoming S&P global PMI indices, signaling potential economic challenges that could influence the Federal Reserve's interest rate policy decisions.
Despite expectations of the Federal Reserve continuing to raise interest rates, with a projected decrease of around 85 basis points according to future contracts in the currency market for the next year, the path for gold seems resilient. Technical analysis suggests that if gold attempts to breach the $2000 threshold again, it may encounter potential resistance around $2010.
Investors are closely monitoring these developments as they could have a significant impact on gold price volatility and other key financial indicators.
Since the beginning of November, US bond yields have significantly decreased, dropping over 6% or nearly 30 basis points. Simultaneously, the US dollar has exhibited a noticeable decline against major currencies, with the DXY index falling from above 106 to below 104, indicating a nearly 3% decrease.
Earlier this week, gold swiftly surpassed the $2000 mark and has since remained near that level. This performance occurs even as market participants brace for the upcoming S&P global PMI indices, signaling potential economic challenges that could influence the Federal Reserve's interest rate policy decisions.
Despite expectations of the Federal Reserve continuing to raise interest rates, with a projected decrease of around 85 basis points according to future contracts in the currency market for the next year, the path for gold seems resilient. Technical analysis suggests that if gold attempts to breach the $2000 threshold again, it may encounter potential resistance around $2010.
Investors are closely monitoring these developments as they could have a significant impact on gold price volatility and other key financial indicators.
