Summary:
Gold prices rose as Treasury yields dipped. It had the largest daily loss since October 2 and fell for three consecutive days.
Gold prices edged higher in early Asian hours on Thursday due to a dip in Treasury yields. Bullion had its biggest daily loss since 2 Oct and dropped for three days in a row the previous session.
Powell did not comment on monetary policy or the economic outlook in prepared remarks at a conference on Wednesday. He is scheduled to speak at another conference on Thursday.
Investors began to shrug off the conflict in the Middle East which has not had a knock-on effect. Notably more splits have emerged between the US and Israel.
Secretary of State Blinken said Wednesday that Gaza should be unified with the West Bank under the Palestinian Authority once the war is over while Netanyahu suggested that his country could hold a security role in Gaza “for an indefinite period.”
A rebound in equity markets also helped drive outflow out of gold investment. The S&P 500 has gained 4.5% in Nov after a substantial pullback that lasted for three months.
Outflows from physically-backed gold ETFs totalled $2bn in October, the fifth consecutive monthly loss, according to WGC. Higher for longer interest rates give cash an edge over the interest-free asset.
Gold price settles below the broken neckline of the double top pattern and limps around the 1950 area. The 50 MA seems the next support where it could find stability.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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