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GOLD: Trump Win Weighs Despite US Fed Cut

GOLD
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Gold is 0.6% lower in today’s Asia-Pac session, after closing 0.8% lower at $2684.77 on Friday. 

  • Friday’s move left bullion 1.8% lower on the week.
  • On Friday, Wall Street ended on a positive note, with the S&P marking its fourth consecutive gain amid optimism for a pro-growth, business-friendly agenda under Trump. The index rose 0.38% to close at 5,995, testing but not quite reaching the 6,000 level. This marked the S&P's 50th record high this year. The week's 4.66% rally was also the strongest weekly gain of the year.
  • US short-term rates softened amid the rally in risk assets and reduced expectations for rate cuts. Typically, lower rates are supportive for gold, as it carries no interest yield.
  • Despite this week’s dip, UBS analysts say that gold will likely see support as a hedge against the inflationary pressures of higher US government borrowing.
  • From a technical perspective, the trend condition remains bullish, and the latest pullback is considered corrective, according to MNI’s technicals team. Attention is on a key support at $2,647.4, the 50-day EMA. For bulls, a reversal higher would refocus attention on the bull trigger at $2,790.1, the Oct 31 high.
  • Meanwhile, silver has underperformed, falling by ~2.5% on Friday and 3.8% on the week.
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Gold is 0.6% lower in today’s Asia-Pac session, after closing 0.8% lower at $2684.77 on Friday. 

  • Friday’s move left bullion 1.8% lower on the week.
  • On Friday, Wall Street ended on a positive note, with the S&P marking its fourth consecutive gain amid optimism for a pro-growth, business-friendly agenda under Trump. The index rose 0.38% to close at 5,995, testing but not quite reaching the 6,000 level. This marked the S&P's 50th record high this year. The week's 4.66% rally was also the strongest weekly gain of the year.
  • US short-term rates softened amid the rally in risk assets and reduced expectations for rate cuts. Typically, lower rates are supportive for gold, as it carries no interest yield.
  • Despite this week’s dip, UBS analysts say that gold will likely see support as a hedge against the inflationary pressures of higher US government borrowing.
  • From a technical perspective, the trend condition remains bullish, and the latest pullback is considered corrective, according to MNI’s technicals team. Attention is on a key support at $2,647.4, the 50-day EMA. For bulls, a reversal higher would refocus attention on the bull trigger at $2,790.1, the Oct 31 high.
  • Meanwhile, silver has underperformed, falling by ~2.5% on Friday and 3.8% on the week.