The bullion fell by 0.72%, closing at 2671.45 after rebounding from its session low of 2663.17.
This movement coincides with broader consolidation in the precious metals market, driven by mixed cues on Federal Reserve policy and strengthening global equity markets. Demand for safe-haven assets remains subdued amid improving economic optimism.
Uncertainty surrounding President-elect Donald Trump’s policies, including tariffs that could fuel inflation, and investor positioning ahead of key U.S. economic data have supported demand for the precious metal.
Fed officials scheduled to speak this week could provide additional clues about the central bank’s 2025 policy trajectory. Softer inflation figures could weaken the dollar, potentially boosting gold prices by making the metal less expensive for international buyers.
Picture: Gold declines to 2671, rebounding off 2663 lows as early signs of bullish momentum emerge, as seen on the VT Markets app.
The 15-minute chart highlights a consistent bearish trend, with moving averages (MA5, MA10, MA30) maintaining a downward slope throughout the session. However, the MACD (12,26,9) shows early signs of recovery, with the histogram turning positive and the MACD line crossing above the signal line, signalling a potential shift in momentum.
Gold prices remain buoyed by their role as an inflation hedge, especially as concerns grow over Trump’s policies and their potential impact on price pressures. While a strong dollar typically weighs on bullion, persistent inflation worries and softer CPI data could support further gains.
The next direction will depend heavily on the U.S. inflation figures and Fed commentary this week. Traders should brace for potential volatility in both gold and the dollar.
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