Gold turns lower
Gold has turned lower on the session - making for a more interesting end to the week. Indeed, the markets have been quite intriguing this week, with the US dollar at the centre of the action. Despite hotter-than-expected inflation data, the greenback softened following Trump’s more measured stance on tariffs, while the euro found support amid his expressed willingness to end the Ukraine conflict.
Previously, gold was ignoring all the dollar strength and was rallying, breaking the historic negative relationship. That seems to be the case again today with the metal falling despite a weaker US dollar.
Is this the start of the correction I was eyeing?
I guess, time will tell.
To be fair, it needs a correction in the near future to remove some speculative froth. That said, a confirmed reversal signal would be needed before adopting a bearish short-term outlook on XAU/USD.
Trump’s declaration that he intends to bring an end to the conflicts in Gaza and Ukraine raises the prospect of reduced haven demand, should he succeed. At the same time, his protectionist stance and expansive spending plans could keep US inflation elevated, delaying rate cut expectations and lending support to bond yields.
By Fawad Razaqzada, market analyst with FOREX.com
Previously, gold was ignoring all the dollar strength and was rallying, breaking the historic negative relationship. That seems to be the case again today with the metal falling despite a weaker US dollar.
Is this the start of the correction I was eyeing?
I guess, time will tell.
To be fair, it needs a correction in the near future to remove some speculative froth. That said, a confirmed reversal signal would be needed before adopting a bearish short-term outlook on XAU/USD.
Trump’s declaration that he intends to bring an end to the conflicts in Gaza and Ukraine raises the prospect of reduced haven demand, should he succeed. At the same time, his protectionist stance and expansive spending plans could keep US inflation elevated, delaying rate cut expectations and lending support to bond yields.
By Fawad Razaqzada, market analyst with FOREX.com
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.