PT Rifan Financindo Berjangka – Gold holds below $2,650 on US Dollar rebound
Gold price (XAU/USD) edges lower to around $2,645 during the early Asian session on Monday. A recovery in the US Dollar broadly weighs on the precious metal. However, persistent geopolitical tensions could cap the downside for XAU/USD.
The yellow metal declined 3% in November, its worst monthly loss since September 2023. A victory of Donald Trump in the US Presidential election in November fuelled expectations that the Federal Reserve (Fed) would adopt a cautious approach to further rate cuts, which boost the Greenback and drag the USD-denominated Gold lower.
Nonetheless, the escalating geopolitical tensions could boost the Gold price, a traditional safe-haven asset. Russian and Syrian jets have carried out air strikes on Syrian rebels who are advancing through the country after seizing its second-largest city, per Reuters. “Persistent global uncertainties continue to drive demand for gold as a safe-haven asset,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
Traders brace for the US ISM Manufacturing Purchasing Managers’ Index (PMI) on Monday for fresh impetus. The Manufacturing PMI is projected to rise to 47.5 in November from 46.5 in the previous reading. On Friday, the attention will shift to the US Nonfarm Payrolls (NFP) for November.(cay)
Source: Fxstreet.
Gold climbed about 1% to above $2,660
Gold climbed about 1% to above $2,660 per ounce on Friday, rising for the fourth straight session, supported by a softer US dollar and rising geopolitical tensions. Reports indicated that President Putin warned of a potential nuclear-capable missile strike on Ukraine, while Israel and Hezbollah accused each other of breaching the ceasefire just a day after it took effect.
Still, the metal is set to decline around 2% for the week, as markets awaited further US data for additional insights into the Federal Reserve’s monetary policy outlook. Earlier this week, core PCE prices in October met expectations, keeping investors anticipating another Fed rate cut in December. Yet, other data pointed to a resilient economy, reinforcing expectations that the Fed will adopt a cautious approach next year. Over the month, gold is set to decline for the first time since June.(Cay) PT Rifan Financindo Berjangka.
Source: Trading economi