Gold price bulls retain intraday control amid sliding US bond yields and softer USD
- Gold price gains follow-through traction for the second day amid trade war concerns.
- Sliding US bond yields, softer USD and geopolitical risks further benefit the XAU/USD.
- Traders look to the US Q3 GDP print and the US PCE Price Index for fresh impetuses.
Gold price (XAU/USD) builds on the overnight bonce from the $2,600 neighborhood, or a one-week low and extends its steady ascent through the first half of the European session on Wednesday. This marks the second straight day of a positive move and is sponsored by the global flight to safety, bolstered by geopolitical risks and US President-elect Donald Trump’s tariff plans. Furthermore, sliding US Treasury bond yields keep the US Dollar (USD) depressed near the weekly low and turn out to be another factor that benefits the commodity.
The momentum lifts the Gold price to a two-day high, closer to the $2,650 level, though the prospects for slower interest rate cuts by the Federal Reserve (Fed) might cap gains for the non-yielding bullion. Apart from this, a generally positive risk tone warrants some caution before placing aggressive bullish bets around the XAU/USD. Traders now look to the first revision of the US Q3 GDP print and the US Personal Consumption Expenditure (PCE) Price Index data for short-term opportunities later during the early North American session.
Gold price buying remains unabated amid trade war fears, geopolitical risks
- US President-elect Donald Trump pledged to impose tariffs on all products coming into the US from Canada, Mexico and China, driving some follow-through haven flows towards the Gold price.
- Ukraine reported the biggest Russian drone attack on its territory on Tuesday. Russia used a hypersonic missile on Ukraine last week and is advancing at the fastest rate since the 2022 invasion.
- Russia is reported to be using North Korean troops in Ukraine. Ukraine is striking targets deep inside Russia with Western-supplied missiles, raising the risk of a further escalation of the conflict.
- The long-running Middle East conflict de-escalated after US President Joe Biden announced that Lebanon and Israel agreed to a ceasefire deal effective from 02:00 GMT this Wednesday.
- The Conference Board reported on Tuesday that the US Consumer Confidence Index climbed to 111.7 in November – the highest since July 2023 – from 109.6 in the previous month.
- Minutes of the November 6-7 FOMC meeting showed that officials were divided over how much farther they may need to cut rates and were uncertain about the direction of the economy.
- The CME Group’s FedWatch Tool indicates that investors are still pricing in a 63% chance that the US central bank will lower borrowing costs by 25-basis-point at the December meeting.
- President-elect Donald Trump’s nominee for US Treasury secretary, Scott Bessent is expected to take a more phased approach on tariffs in an attempt to rein in the budget deficit.
- The yield on the benchmark 10-year US government bond holds steady above a two-week low touched on Monday and the US Dollar is seen consolidating near the weekly low.
- Wednesday’s US economic docket features the release of the prelim Q3 GDP print and the Personal Consumption Expenditure (PCE) Price Index later during the North American session.
Gold price acceptance above $2,650 will set the stage for additional gains
From a technical perspective, Tuesday’s goodish rebound from the 61.8% Fibonacci retracement level of the recent recovery and the subsequent strength favor bullish traders. That said, oscillators on the daily chart are yet to confirm a positive bias and suggest that the move up is more likely to confront stiff resistance near the 100-period Simple Moving Average (SMA) on the 4-hour chart. The said barrier is pegged near the $2,645 region, above which the Gold price could climb further towards the $2,665 area en route to the $2,677-2,678 hurdle before aiming to reclaim the $2,700 round figure.
On the flip side, the $2,624-2,622 region could offer some support ahead of the $2,600 mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and expose the 100-day SMA, around the $2,569-2,568 zone. This is followed by the monthly swing low, around the $2,537-2,536 area. Failure to defend the said support levels will be seen as a fresh trigger for bearish traders and set the stage for the resumption of the corrective decline from the $2,800 neighborhood, or the all-time peak touched in October.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.19% | -0.29% | -0.79% | -0.08% | -0.44% | -0.98% | -0.30% | |
| EUR | 0.19% | -0.10% | -0.61% | 0.10% | -0.25% | -0.79% | -0.12% | |
| GBP | 0.29% | 0.10% | -0.52% | 0.20% | -0.15% | -0.69% | -0.02% | |
| JPY | 0.79% | 0.61% | 0.52% | 0.71% | 0.35% | -0.19% | 0.48% | |
| CAD | 0.08% | -0.10% | -0.20% | -0.71% | -0.36% | -0.90% | -0.24% | |
| AUD | 0.44% | 0.25% | 0.15% | -0.35% | 0.36% | -0.54% | 0.13% | |
| NZD | 0.98% | 0.79% | 0.69% | 0.19% | 0.90% | 0.54% | 0.68% | |
| CHF | 0.30% | 0.12% | 0.02% | -0.48% | 0.24% | -0.13% | -0.68% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
