GOLD prices fall under the weight of yields and exchange rates
World gold prices fell in the trading session on Friday (November 1) under pressure from rising US Treasury bond yields and the USD exchange rate. However, the need to hedge risks ahead of the US presidential election next week helps limit the decline in gold prices.
At closing, the spot price of gold in the New York market decreased by 7.9 USD/oz compared to the closing level of the previous session, equivalent to a decrease of 0.29%, to 2,736.5 USD/oz - according to data from the exchange.
World gold prices decreased by 0.44% this week. On Thursday, spot gold prices set an all-time record at more than 2,790 USD/oz.
The main source of downward pressure on gold prices this week is the increasing trend of US Treasury bond yields and the USD exchange rate.
The 10-year US Treasury bond yield increased nearly 10 basis points on Friday, reaching 4.382%, the highest in the past 4 months - according to data from CNBC news agency.
Yields increased due to falling bond prices as investors strongly sold US Treasury bonds ahead of the US presidential election next Tuesday. The reason leading to investors selling US debt is concerns about the increasing federal budget deficit whether Mr. Donald Trump or Ms. Kamala Harris are elected.
The Dollar Index, which measures the strength of the USD against a basket of six other major currencies, increased 0.33%, closing Friday's session at 104.32 points - according to data from MarketWatch. This week, the index increased by 0.06%, bringing the total increase in the past month to 1.75%.
The USD is increasing in value because this currency is also promoting its role as a safe investment channel in the context of the approaching US election.
At closing, the spot price of gold in the New York market decreased by 7.9 USD/oz compared to the closing level of the previous session, equivalent to a decrease of 0.29%, to 2,736.5 USD/oz - according to data from the exchange.
World gold prices decreased by 0.44% this week. On Thursday, spot gold prices set an all-time record at more than 2,790 USD/oz.
The main source of downward pressure on gold prices this week is the increasing trend of US Treasury bond yields and the USD exchange rate.
The 10-year US Treasury bond yield increased nearly 10 basis points on Friday, reaching 4.382%, the highest in the past 4 months - according to data from CNBC news agency.
Yields increased due to falling bond prices as investors strongly sold US Treasury bonds ahead of the US presidential election next Tuesday. The reason leading to investors selling US debt is concerns about the increasing federal budget deficit whether Mr. Donald Trump or Ms. Kamala Harris are elected.
The Dollar Index, which measures the strength of the USD against a basket of six other major currencies, increased 0.33%, closing Friday's session at 104.32 points - according to data from MarketWatch. This week, the index increased by 0.06%, bringing the total increase in the past month to 1.75%.
The USD is increasing in value because this currency is also promoting its role as a safe investment channel in the context of the approaching US election.
Note
Last week, the gold market experienced many notable fluctuations. Gold prices soared to an all-time high, exceeding $2,800/ounce, as investors bought based on rumors about the race for the White House between former President Donald Trump and Vice President Kamala Harris. as well as tensions in the Middle East.Note
![GOLD MARKET ANALYSIS AND COMMENTARY - [Nov 04 - Nov 08]](https://s3.tradingview.com/e/eavOUdft_mid.png)
Note
The results of the US Presidential election will be announced next week, the movement of the USD and the policy meeting of the US Federal Reserve (FED)... will be factors affecting the trend of gold prices.
In the short term, gold prices may cool down after a period of hot growth, but the outlook for the precious metal at the end of the year and early 2025 is still forecast to be positive.
Note
The upcoming US election will have a profound impact on the US and world economy. Ms. Kamala Harris's victory may bring some policy changes, but will mainly maintain a stable growth trajectory for the US and the world until 2025. On the contrary, the election of Mr. Donald Trump could bring change. Major changes in fiscal, regulatory, trade and immigration, creating a variety of economic scenarios.Note
The DXY index is showing more and more obvious weakness in the run-up to the US Presidential election, although selling pressure seems to be somewhat limited compared to the beginning of the day.Note
Gold prices stabilized on Monday (November 4), as uncertainty over the US presidential election loomed with markets predicting the possibility of a disputed outcome and political tensions, while investors Investors are also closely monitoring the US Federal Reserve's (Fed) policy meeting this week.Note
Gold increased to 2,743 USD/oz as USD weakenedNote
ISM Services PMI: 56.0 (forecast: 53.8, previous: 54.9)
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