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MENAFN- Daily Forex)
- As predicted, Trump's victory has strengthened the US dollar, leading to further losses in gold prices, which have been steadily declining.
- Prices are now around the support level of $2550 per ounce at the time of writing, the lowest price in two months.
The strength of the US dollar coincided with the relative calming of global geopolitical tensions, which are factors that are generally bearish for the gold market.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Why have gold losses increased after the US inflation figures?
According to gold trading platforms, the gold price index has declined for the fifth consecutive day to its lowest level in eight weeks. This is due to the increased gains of the US dollar following the announcement of stronger-than-expected US inflation figures, which could in turn hinder the path of easing US monetary policy. Currently, expectations of a US interest rate cut by the Federal Reserve in December remain unchanged, and traders are now estimating the probability of a US interest rate cut of more than 80%, up from 60% before the latest US economic data.
Today, readings of the US Producer Price Index and weekly US jobless claims will be announced, culminating in anticipated statements from Federal Reserve Chairman Jerome Powell Price Forecast for the Coming Days
Gold price forecast is expected to decline further as Trump's economically hostile policies will increase global inflation rates and thus will lead global central banks to tighten again, which will be negative for the gold market. In confirmation of this, live gold prices have fallen by more than 4% since the sell-off last Friday, under the pressure of speculation that Trump's policies may push the US Federal Reserve to stop the easing cycle due to its financial strategies and inflationary policies. According to the performance on the daily time frame chart above, the general trend for gold prices is turning bearish. As we mentioned before, breaking the support levels of $2660 and $2600 per ounce will strengthen the bears' control, which may increase with the next most important move, the support level of $2500 per ounce, which in turn will move the technical indicators towards strong oversold levels Price Analysis and Signals Today:
EURUSD Chart by TradingView
From what was mentioned above, we advise you, dear reader, to monitor the price of gold moment by moment, as any gains in gold prices may be an ideal target for selling. Currently, the closest resistance levels for gold are $2578, $2595, and $2635, respectively. Furthermore, always considering placing profit limit and stop loss orders to protect the trading account from any sudden reversal's contrary to expectations.
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