Gold prices are hovering just below the $2,000

23 Nov 2023

Gold prices are hovering just below the $2,000 mark as European trading begins. The bullion price found strong support earlier in the week, as expectations that the Fed's rate hiking cycle had ended consolidated amongst investors. The resulting mood led to a two-and-a-half-month low for the greenback and saw treasury yields drop, in a dynamic that benefited the non-yielding precious metal. However, the subsequent publication of hawkish Fed minutes cooled this enthusiasm, and the release of strong labour data on Wednesday compounded the sentiment of uncertainty as investors hesitated to call the next Fed monetary policy move. With the 'higher-for-longer' view lingering and receding expectations of a rate cut in the first half of 2024, the upside for gold prices may be limited.

Ricardo Evangelista – Senior Analyst, ActivTrades