PT Rifan Financindo Berjangka – Gold Prices Down as US Dollar Strengthens
Gold prices fell during the North American session as traders seeking safety bought the Greenback as US Treasury yields rose to their highest levels since November 2023. At the time of writing, XAU/USD was trading at $2,657 after failing to break through $2,700, down 1.20%.
A scant economic data on Monday left investors digesting the latest US Nonfarm Payrolls figures for December. While the economy performed better than expected, with the figure rising by 256K beating estimates of 160K and 212K in November, traders are eyeing the release of US inflation data.
On Wednesday, the Consumer Price Index (CPI) for December will be released, with the reading expected to come in at 2.8% YoY, up from 2.7% in November. Core CPI, which excludes volatile items, is projected to remain unchanged at 3.3% YoY, unchanged from the last three months’ reading.
Inflation data could change traders’ expectations for Fed easing. Meanwhile, money market futures data has shown that most investors expect only 25 basis points of easing, leaving the Fed funds interbank rate at 4.00%, down from the current range of 4.25%-4.50%.
Meanwhile, US Treasury yields held on to minimal gains, while the greenback, after breaking through the 110.00 mark, has retraced below the figure but remains in the green zone.
Gold bullion prices also took a hit amid good news about a possible deal that could end the Gaza war, via Reuters, citing an official briefed on the matter.
In seven days, US President-elect Donald Trump will be inaugurated as the 47th President. Financial markets are awaiting his first executive order, with some speculation growing that he will impose tariffs first. He recently said that he has to do something about trade with Mexico and Canada.
In the US, key data releases include inflation figures on both the producer and consumer side, alongside Retail Sales and jobless claims for the week ending January 11.
Source: FXStreet
Gold Sinks Lower With Traders Booking Profit After Steep Rally Last Week
Gold’s price (XAU/USD) sees some broad profit taking and drops by 1% and halts its four-day winning streak on Monday as markets catch up and reprice the recent US Nonfarm Payrolls release. The report further confirms the narrative that the Federal Reserve (Fed) might keep its policy rate higher for longer. While higher borrowing costs are typically negative for the non-interest-bearing precious metal, investors are bracing for more volatility ahead of President-elect Donald Trump’s return to the White House on January 20.
On the economic data front, there is a relatively calm trading day ahead, with the dust settling further after the recent US Nonfarm Payrolls release. This Monday, the US Treasury will allocate some short-term bonds to the market. PT Rifan Financindo Berjangka.
Source : FXStreet