Longer-term gold traders are aware that any extreme weakness will be met with aggressive buying with the Federal Reserve watching their backs. A rise in U.S. Treasury yields and a slight recovery from an earlier setback by the U.S. Dollar are weighing on gold prices on Monday after an early rally attempt failed. Increased demand for riskier stocks and currencies is also helping to generate some downside pressure.
At 12:46 GMT, December Comex gold futures are trading $1872.80, down $13.40 or -0.71%.
Unlike last Monday, gold is responding to demand for stocks, which appears to be encouraging traders to sell Government bonds, driving yields higher. The move suggests that today is going to be a “risk-on” session with the U.S. Dollar on the outside looking in. Should the dollar participate in the demand for risk, however, then look for gold to break sharply throughout the session.
Earlier in the session, gold was […]
November 16, 2020 (updated November 16, 2020) Published by StockMan