GOLD
Gold prices edged down as the European session began on Thursday after briefly touching a new all-time high. Haven demand for gold remains strong, as traders seek refuge from the uncertainty surrounding the outcome of the US election. Persistent doubts over who will emerge as the winner continue to impact financial markets, decreasing risk appetite and leading to losses in equities while supporting assets like gold. As we approach the end of the week, key economic data releases are expected, including the Fed's preferred inflation measure and October's jobs report tomorrow. These figures could shift the market sentiment around gold. Robust data would reduce the likelihood of aggressive Fed rate cuts, which could prompt a sell-off in treasuries, push yields higher, and boost dollar demand. This scenario could halt the current gold rally and potentially trigger a correction, particularly as the metal appears technically overbought.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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