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Gold Prices Higher As USD Softens On December Fed Pivot

GOLD

The gold price responded positively to the weaker USD in response to the signal from the FOMC minutes that there is likely to be a smaller rate hike in December. Bullion closed the NY session at just under $1750/oz but spot has moved 0.35% from there today to trade around $1755, as DXY as fallen another 0.35%.

  • Gold has struggled this year as the Fed implemented aggressive monetary tightening. Signs that it may be slowing are good for bullion. But prices are still some way off the bull trigger of $1786.50, the November 15 high.
  • The US is closed for Thanksgiving and so trading is likely to be light tonight. But there is the German IFO in Europe and the ECB meeting accounts plus a number of ECB speakers.

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