Gold price recovers further from one-month low, climbs to $2,620 amid risk-off mood

Gold prices have recovered from a one-month low to reach $2,620 as risk-averse sentiment dominates due to the Federal Reserve’s hawkish stance and global geopolitical concerns.

  • Key Factors Driving Gold’s Recovery:
    • Equity market sell-offs post-FOMC boosted safe-haven demand.
    • Fed’s slower pace of interest rate cuts supports US bond yields, limiting gold’s gains.
    • Geopolitical risks and trade war fears further enhance haven flows.
  • Market Influences:
    • The US Dollar remains strong near a two-year high, capping gold’s upward momentum.
    • The 10-year US Treasury yield climbs, exerting additional pressure on gold.
  • Focus on Economic Data:
    • Traders await Thursday’s Q3 GDP final data and jobless claims for immediate impact.
    • Friday’s PCE Price Index, a key inflation gauge, will shape near-term trends for gold and the US Dollar.

In summary, gold benefits from market risk aversion but faces resistance due to a strong Dollar and rising bond yields, with upcoming economic data likely to influence its trajectory.

https://www.fxstreet.com/news/gold-price-rebounds-from-one-month-low-amid-risk-off-impulse-upside-seems-limited-202412190328

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