{"id":15696,"date":"2024-11-07T04:22:46","date_gmt":"2024-11-07T04:22:46","guid":{"rendered":"https:\/\/www.vglobaltrader.com\/?p=15696"},"modified":"2024-11-07T04:22:46","modified_gmt":"2024-11-07T04:22:46","slug":"gold-slips-as-dollar-gains-fed-decision-in-focus","status":"publish","type":"post","link":"https:\/\/www.vglobaltrader.com\/kur\/analysis\/gold-slips-as-dollar-gains-fed-decision-in-focus\/","title":{"rendered":"Gold Slips as Dollar Gains; Fed Decision in Focus"},"content":{"rendered":"\n<p><em>Listen to the article here:<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.vglobaltrader.com\/wp-content\/uploads\/2024\/11\/15696.mp3\"><\/audio><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Key points:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gold remains steady near $2,663.02 per ounce, following a record high of $2,790.15 last week.<\/li>\n\n\n\n<li>Fed rate decision anticipated today, with a possible 25-basis-point cut amidst Trump\u2019s re-election, likely influencing gold prices.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The gold market is experiencing a moment of hesitation today, with spot gold prices hovering around $2,663.02 per ounce as of early trading. This stabilisation follows last week&#8217;s record high of $2,790.15, a level that has since seen a steep fall, with gold losing nearly $130.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vglobaltrader.com\/wp-content\/uploads\/2024\/11\/image-19-1024x467.jpeg\" alt=\"\" class=\"wp-image-15697\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>See: XAUUSD shows a bearish trend, dropping from 2749.97 to 2653.66 with bearish signals from MA and MACD on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The primary driver for this pause in gold\u2019s rally appears to be a strengthened U.S. dollar, which reached a four-month high after Donald Trump\u2019s successful return to the presidency, defeating Vice President Kamala Harris. This dollar boost makes gold more costly for overseas buyers, dampening demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Gold Futures Dip as Dollar Strengthens on Pro-Growth Outlook<\/strong><\/h2>\n\n\n\n<p>U.S. gold futures also took a slight dip of 0.2% to $2,670.40, indicating mild pressure across gold instruments as the dollar&#8217;s momentum holds. <\/p>\n\n\n\n<p>Traders quickly shifted into the dollar on the heels of Trump\u2019s victory, likely viewing his win as a harbinger for economic policies focused on growth and inflation containment. With Trump&#8217;s administration set to focus on economic stimulus, traders speculate that the Federal Reserve may moderate its rate-cut trajectory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Fed Rate Cut Eyed; Dollar Gains, Pressuring Gold<\/strong><\/h2>\n\n\n\n<p>The anticipated 25-basis-point cut, expected at the end of the Fed\u2019s two-day meeting, has taken centre stage. This cut could potentially be one of the last in the near term, depending on how quickly Trump&#8217;s policies start affecting economic growth and inflation.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\u201cThis Fed meeting on Thursday \u2026 looks very engrained as a 25 basis point ease,\u201d Easterly EAB Risk Solutions strategist Arnim Holzer says. \u201cIt would be very difficult not to do 25 basis points here.\u201d <a href=\"https:\/\/t.co\/eIE530VdsM\">pic.twitter.com\/eIE530VdsM<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1853463465492406431?ref_src=twsrc%5Etfw\">November 4, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>&nbsp;Additionally, traders will closely monitor Fed Chair Jerome Powell\u2019s remarks, as any hint towards a slower rate-cut path could further fuel dollar strength, adding downward pressure on gold.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Gold\u2019s Outlook Uncertain as Rate-Cut Speculation Looms<\/strong><\/h2>\n\n\n\n<p>As a traditional safe-haven asset, gold thrives in low-interest-rate conditions, which decrease the opportunity cost of holding non-yielding metals. The uncertainty around future rate cuts, however, presents a mixed outlook. <\/p>\n\n\n\n<p>If Powell signals a conservative stance on future cuts, the dollar could gain further traction, with potentially bearish implications for gold in the short term.<\/p>\n\n\n\n<p>Metals across the board experienced variable impacts. Spot silver saw a modest increase of 0.2% to $31.21 per ounce, while platinum gained 0.13% to $987.90. Palladium, however, declined by 0.2% to $1,032.93, as the markets await further policy clarity. <\/p>\n\n\n\n<p>Meanwhile, other commodities such as oil and gas have begun recouping losses, suggesting that Trump&#8217;s pro-energy policies could reinforce demand in these sectors.<\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vglobaltrader.com\/analysis\/usdx-hits-four-year-high-as-trump-re-elected\/\">USDX Hits Four-Year High as Trump Re-Elected<\/a><\/strong><\/p>\n\n\n\n<p>With market participants awaiting more direction, today&#8217;s Fed decision will be a critical indicator. If dollar strength persists, gold prices may struggle to regain last week\u2019s highs in the near term.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vglobaltrader.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold holds steady as U.S. dollar strengthens after Trump\u2019s re-election. Traders await Fed&#8217;s rate decision, that may affect gold\u2019s appeal. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41],"tags":[9,52],"class_list":["post-15696","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold","tag-precious-metals"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/posts\/15696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/comments?post=15696"}],"version-history":[{"count":0,"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/posts\/15696\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/media?parent=15696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/categories?post=15696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vglobaltrader.com\/kur\/wp-json\/wp\/v2\/tags?post=15696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}