GOLD
Gold prices reached a fresh all-time high in early Wednesday trading, supported by lower Treasury yields and a softening US dollar, which enhanced the appeal of the non-yielding metal for investors. However, the primary driver behind the recent surge in bullion prices is uncertainty surrounding the US Presidential election outcome. Financial markets historically struggle with uncertainty, and with the election outcome too close to predict, demand for haven assets has surged, with gold remaining the ultimate refuge. In this context, traders are closely monitoring key economic data releases this week: PCE inflation (the Fed's preferred inflation measure), US GDP, and October's Non-farm Employment numbers on Friday. Each of these releases could impact the Federal Reserve's rate policy, influencing gold price movements. Robust data may lower rate-cut expectations, limiting gold's gains, while weaker numbers could support further advances, potentially driving prices towards the $2,800 mark.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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