The price of gold yesterday reached its highest level since the US presidential election five weeks ago, at $2,725 per troy ounce, but then fell below the $2,700 mark, says commodities analyst Carsten Fritsch. from Commerzbank.
Gold seems to be losing strength
“This week’s price increase came decoupled from developments in the US dollar, bond yields and interest rate expectations. A 25 basis point Fed rate cut on Wednesday next week will already is completely discounted. Only the news that the Chinese central bank bought a small amount of Gold in November for the first time in seven months could be cited as an argument.”
“Therefore, it is not surprising that a correction was triggered yesterday by a stronger US dollar and higher bond yields. Profit taking may also have played a role, as evidenced by the sharp outflow of almost 5 tonnes of the “At $2,700, gold appears to be losing steam.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
