Gold prices fell in early Monday trading, coming under pressure from rising US Treasury yields and a slightly stronger dollar. Last week’s Fed rate hike, combined with expectations that further tightening may follow, is pushing yields higher and increasing the opportunity cost of holding the precious metal. The firmer US dollar is adding to the downside, while some profit-taking after Friday’s rebound is also playing a role. Against this backdrop, traders will keep a close eye on incoming US economic data and comments from Fed officials, which have the potential to drive the US dollar and Treasury yields. The US-Iran war remains central to this dynamic through its impact on energy prices and inflation expectations, which can strengthen or weaken the case for further monetary tightening and impact gold prices accordingly.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.