On Monday, gold prices fell as they got closer to the crucial 50-day moving average, which has been holding the commodity steady since July at $2,646.83. A technical bounce might be triggered by a test at this level, but a clear break could signal a change in attitude and expose the metal to more downside, with $2,604.39.
It’s possible that traders are preparing for a more significant correction as the recent trend of “buying the dip” is waning. Gold would need to overcome minor resistance levels at $2,668.52, $2,697.28, and $2,716.76 in order to regain positive momentum.
The price of gold is close to a critical 50-day moving average support, suggesting potential decline if this level breaks.
If Fed remarks or U.S. inflation data suggest higher-for-longer rate policies, gold may be under pressure to sell.
Treasury yields are rising in response to Trump’s reelection; this week, the 10-year yield surpassed 4.4%.
With a cautious stance anticipated for 2025, traders watch the Fed’s December rate cut likely.
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