- XAU / USD is consolidating within $ 1,885
- Gold prices continue to test the so far elusive $ 1,900 level.
Spot Gold Prices (XAU / USD) They have remained largely in range so far this Friday and have mostly stalled within the $ 1,880 – $ 1,890 parameters. On the day, the precious metal is trading with minor losses of around $ 2 or 0.1%.
It has been a rollercoaster day for the US bond markets, with 10-year nominal yields ranging from 94bp to 92bp and vice versa, all while real 10-year yields have ranged from -102bp and -104 bp and vice versa. Real returns remain clearly depressed, helping to keep supply below precious metals like gold, as are rising inflation expectations.
Meanwhile, things have been choppy in the US equity markets ahead of Telsa’s inclusion in the index on Monday (which will generate multiple billions in purchases of TSLA shares by index tracker funds. S&P 500). As it stands, the S&P 500 is trading about half a percent lower, the Nasdaq 100 is trading slightly less, and the Dow is trading slightly more, which should offer some support for gold from safe haven.
However, spot gold has a negative correlation with the US dollar, which has been at the forefront today. Nothing, in particular, has changed for the US dollar fundamentally speaking (markets are still expecting a dovish Fed and fiscal stimulus in the new year), so Friday’s move is likely the result of shorts taking the tightening from earnings / positions on the last day of the week, which, by the way, is the last trading day of the calendar year for many (lucky) market participants who will take the rest of the year off to enjoy Christmas with their families.
Technical levels
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