Market Analysis: The US Dollar and US Treasury Yields Are the Main Drivers of Gold Prices This Week

According to Jinse Finance, analyst Fawad Razaqzada stated that this week’s gold trend will mainly depend on U.S. Treasury yields and the U.S. dollar exchange rate. “If bond prices fall further, or yields rise, it could put pressure on low-yield and zero-yield assets such as gold,” he said. Meanwhile, “if the U.S. dollar rebounds this week (with a dense schedule of data releases and speeches by Federal Reserve officials), gold may lose some of its appeal.” Last week, the U.S. dollar came under pressure as the Federal Reserve left the door open for further rate cuts next year. Currently, the market’s focus is on Tuesday’s release of the November non-farm payroll report and Thursday’s consumer price data.