GOLD
Gold prices rose on Tuesday, nearing the all-time highs reached last week. Demand for the precious metal remains strong as traders capitalised on the overnight easing in Treasury yields and a decline in the dollar against other major currencies, using the dip to increase their gold holdings. Meanwhile, bullion is benefiting from increased haven demand. Ongoing uncertainty surrounding the US presidential election continues to support gold prices, as investors seek defensive assets, with the precious metal arguably the top refuge. In this environment, prices remain supported around the current levels. However, traders are expected to proceed cautiously ahead of several key data releases at the end of the week. With the Personal Consumption Expenditures index—considered the Fed's preferred inflation measure—GDP figures, and the crucial non-farm employment data all scheduled for release, a range of factors could influence the Federal Reserve's rate-cutting plans. Ultimately, these factors will shape the performance of the dollar and bond markets, which, given their inverse correlation with gold, will also impact the precious metal's prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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