Gold Prices Dip Below $2,000 in Monday Trading

11 gru 2023

Gold prices dropped below the $2,000 mark during early Monday trading, falling below that significant level for the first time in over two weeks. The precious metal lost some of its shine as traders’ expectations shifted following the release of US labour data on Friday, which came up better than expected. Bullion prices had been supported by hopes that the Federal Reserve would pivot with a rate cut, which some saw coming as early as next March. However, with inflationary pressures still lingering, the resilience of the American labour market means that an earlier rate cut is unlikely. Against this background, the prospect of higher for longer rates is back, in a development that supports treasury yields and the dollar, and is bad news for the non-yielding gold.

Ricardo Evangelista – Senior Analyst, ActivTrades