Gold price falls below $2,700 again – Commerzbank
The Gold price reached its highest level since the US presidential election five weeks ago at $2,725 per troy ounce yesterday, but then fell back below the $2,700 mark, Commerzbank’s commodity analyst Carsten Fritsch notes.
Gold seems to be running out of steam
“This week's price rise occurred detached from developments in the US dollar, bond yields and interest rate expectations. A Fed rate cut of 25 basis points on Wednesday next week is now fully priced in. Only the news that the Chinese central bank bought a small amount of Gold in November for the first time in seven months could be cited as an argument.”
“It therefore comes as no surprise that a correction was triggered yesterday by a stronger US dollar and higher bond yields. Profit-taking may also have played a role, as shown by the strong outflow of almost 5 tons from the world's largest Gold ETF. At $2,700, Gold seems to be running out of steam.”
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FXStreet Insights Team
FXStreet
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