14
2024/11
Wisunofx Market Update: Gold Falls for Fifth Straight Day as Dollar Strengthens and Bond Yields Rise
On Thursday, November 14, during the Asian trading session, spot gold extended its decline, reaching an eight-week low of $2,555.22 per ounce. This marks the fifth consecutive day of losses for gold, pressured by a strengthening U.S. dollar and rising U.S. Treasury yields, as well as uncertainty around the Federal Reserve’s future rate cuts, which has heightened market anxiety.
The U.S. Dollar Index rose to 106.77 in Asian trading, up 0.25% and marking its own fifth straight day of gains. A stronger dollar makes gold more expensive for holders of non-U.S. currencies, thus weighing on gold demand. The 10-year U.S. Treasury yield also rose further, hitting 4.488% for the first time since July.
Market expectations for Trump-led government policies are impacting the dollar’s movement. There is anticipation that Trump’s administration could implement higher tariffs and stricter immigration policies, potentially driving inflation higher. If inflationary pressures persist, the Fed may delay further rate cuts, providing more support for the dollar. Additionally, increased fiscal spending under Trump has pushed up Treasury yields, making the dollar even more attractive.
According to Edison Research, both the House and Senate are expected to be under Republican control following Trump’s inauguration, providing him with significant leverage to implement tariff and spending policies.
Chris Weston, Head of Research at Pepperstone, noted that the dollar’s strength is mainly supported by interest rate differentials, momentum, economic growth differentials, and fiscal and tariff policies. While the dollar’s strength isn’t expected to last indefinitely, Weston suggests that dollar demand could increase further until the U.S. economy shows significant weakening, which may lead to more market sell-offs.
Kyle Rodda, a financial market analyst at Capital, commented that gold prices are currently driven by the dollar and bond yields, causing technical downside for gold. While recent U.S. inflation data indicates a possible small rate cut by the Fed next month, inflation is still expected to remain high next year, which could limit the frequency of rate cuts.
Wednesday’s data showed that U.S. consumer prices in October met expectations, with overall inflation levels easing. However, Federal Reserve officials remain cautious about future rate cuts due to ongoing inflation risks, adding to the volatility in the gold market.
Achieve Trading Success with WisunoFx
Success in trading is not just about skill and knowledge; it’s also about patience and discipline.
Experience excellence with Wisunofx, your premier destination for online trading solutions! With years of industry experience and a commitment to excellence, we deliver superior value to our clients, combining cutting-edge technology with personalized service to meet their unique trading needs.
Our platform offers a wide range of tradeable instruments, including currencies, commodities, and indices, with ultra-fast execution, competitive pricing, and deep liquidity, ensuring you can seize opportunities in the ever-changing financial markets.
At Wisunofx, we prioritize providing a secure and transparent trading environment with industry-leading encryption technology and strict regulatory compliance measures to safeguard your funds.
Start your journey toward trading success and join the thousands of clients who are already growing their wealth with confidence by opening a live account with WisunoFx today at:
https://tw.wsncrmc.com/register/trader/multi-step
Note: Trading financial products involves high risks and may not be suitable for all investors. Please ensure you fully understand the risks and implement appropriate management measures.
