XAUUSD SELL Momentum
Updated
Market Update
—Trump’s BRICS Tariff Threats Bolster Dollar’s Appeal
- President-elect Trump heightened geopolitical tensions by threatening BRICS nations—Brazil, Russia, India, China, and South Africa—with 100% tariffs if they pursue an alternative currency to challenge the U.S. dollar in global trade. The move underscored the dollar’s pivotal role in international commerce, reinforcing its attractiveness to investors.
- Trump’s firm stance against de-dollarisation sent a clear signal to markets about the U.S.’s commitment to maintaining the dollar’s dominance. As a result, investor confidence in the dollar surged, further solidifying its position as the world’s reserve currency.
—Gold Struggles Amid Dollar Strength and Rising Yields
- Gold prices slipped to $2,644 per ounce as the strengthening dollar and rising U.S. Treasury yields weighed on the metal’s appeal. The benchmark 10-year Treasury yield rose by 4 basis points to 4.23%, making gold less attractive as a non-yielding asset.
Although geopolitical uncertainties remain, gold failed to gain traction as traders turned their attention to Friday’s upcoming payroll report, which could influence Federal Reserve policy. Key support for gold are: $2,607, with resistance around $2,670.
—Trump’s BRICS Tariff Threats Bolster Dollar’s Appeal
- President-elect Trump heightened geopolitical tensions by threatening BRICS nations—Brazil, Russia, India, China, and South Africa—with 100% tariffs if they pursue an alternative currency to challenge the U.S. dollar in global trade. The move underscored the dollar’s pivotal role in international commerce, reinforcing its attractiveness to investors.
- Trump’s firm stance against de-dollarisation sent a clear signal to markets about the U.S.’s commitment to maintaining the dollar’s dominance. As a result, investor confidence in the dollar surged, further solidifying its position as the world’s reserve currency.
—Gold Struggles Amid Dollar Strength and Rising Yields
- Gold prices slipped to $2,644 per ounce as the strengthening dollar and rising U.S. Treasury yields weighed on the metal’s appeal. The benchmark 10-year Treasury yield rose by 4 basis points to 4.23%, making gold less attractive as a non-yielding asset.
Although geopolitical uncertainties remain, gold failed to gain traction as traders turned their attention to Friday’s upcoming payroll report, which could influence Federal Reserve policy. Key support for gold are: $2,607, with resistance around $2,670.
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