Quotes and rates for precious metals Gold vs US Dollar (XAUUSD)

• Gold price loses ground to around $2,680 in Monday’s early Asian session. 
• The strength of the USD undermines the yellow metal. 
• The uncertainty surrounding global economic uncertainty, geopolitical risks might boost safe-haven flows, benefiting the Gold price. 

Gold price (XAU/USD) trades in negative territory near $2,680 during the early Asian session on Monday. The downtick of the precious metal is pressured by a stronger US Dollar (USD) due to Donald Trump's victory. 

Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, extends its upside to around 105.00, the four-month high. 
 
Trump's victory has fuelled questions about whether the US Federal Reserve (Fed) may proceed to cut rates at a slower and smaller pace. This, in turn, boosts the Greenback and weighs on the USD-denominated Gold price. 

“This rally in the dollar and yields has put pressure on gold, which traditionally falls as real interest rates rise, reflecting reduced demand for safe-haven assets in the short term,” noted Matthew Jones, precious metals analyst at London-based metals trader Solomon Global. “However, from a longer-term, macro perspective, the future is ‘as good as gold,” added Jones. 

The upbeat US economic data on Friday contributes to the USD’s upside. The US Consumer Sentiment Index rose to 73.0 in November from 70.5 in October, according to the preliminary reading by the University of Michigan. This figure came in better than the market expectation of 71.0.

On the other hand, the global economic uncertainty and the ongoing geopolitical tensions in the Middle East might help limit the yellow metal’s losses. Israeli army Chief of Staff Herzi Halevi approved the expansion of the ground invasion of southern Lebanon, state broadcaster Kan reports.  

• Gold price trades in positive territory around $2,740 in Monday’s early Asian session. 
• The US added just 12,000 jobs in October, the weakest since December 2020.
• Traders will closely monitor the US presidential election and Fed rate decision this week. 

Gold price (XAU/USD) trades with mild gains, snapping the two-day losing streak near $2,740 during the early Asian session on Monday. The uncertainty around the US presidential election and Middle East tensions might boost the safe-haven demand, supporting the yellow metal. 

The upside of the precious metal is bolstered by looming US election uncertainties and ongoing geopolitical tensions in the Middle East. The spotlight for this week will be the US presidential election on Tuesday. JPMorgan analysts noted that regardless of the outcome of the US election, any pullback in gold prices would present a good buying opportunity.

The weaker US October Nonfarm Payrolls (NFP) data boosts rate cut hopes as markets now expect a 25 basis points (bps) rate cut from the US Federal Reserve (Fed) at next Thursday’s meeting. The US NFP increased by 12,000 in October, the smallest gain since December 2020, the US Bureau of Labor Statistics (BLS) showed Friday. This figure followed the 223,000 rise (revised from 254,000) seen in September and below the market consensus of 113,000 by a wide margin. The Unemployment Rate was unchanged at 4.1% in October, matching expectations. 

On the other hand, the renewed Greenback demand and higher yields might weigh on the USD-denominated Gold price as higher yields made non-yielding assets like bullion less attractive in comparison.

• Gold price loses momentum to around $2,735 in Monday’s early Asian session. 
• Geopolitical risks and uncertainty around US presidential elections boost the yellow metal. 
• Bets for a smaller Fed rate cut weigh on the USD-denominated Gold price. 

Gold price (XAU/USD) edges lower to near $2,735, snapping the two-day losing streak during the early Asian session on Monday. However, the downside of the precious metal might be limited amid the ongoing geopolitical tensions and uncertainties surrounding the US presidential election. 

Israeli Prime Minister Benjamin Netanyahu said that Saturday’s attack on Iran severely damaged Tehran’s defenses. Meanwhile, Iranian officials vowed an “appropriate response” Sunday, while saying they do not seek a wider war, per CNN. The geopolitical risks and uncertainty around the upcoming US presidential election could provide some support to traditional safe-haven assets like Gold. 

The purchases of Gold reserves among central banks and increasing demand from investors have lifted the price of yellow metal. The World Gold Council suggested that the central banks worldwide purchased more than 1,000 tonnes of gold during each of the last two years, and China ranks atop the list of nations seeking to bolster their gold reserves. 

On the other hand, a slower pace of rate reductions from the US Federal Reserve (Fed) amid the stronger US economic data undermines the yellow metal. According to the CME FedWatch tool, traders are now pricing in nearly 97.7% that the Fed will cut rates by 25 basis points (bps) in November. 

• Gold price gains momentum to near $2,720 in Monday’s early Asian session. 
• Uncertainty surrounding the US election and geopolitical risks prompted higher demand for safe-haven assets like Gold. 
• The fear of a Chinese economic slowdown could weigh on the XAU/USD. 

The Gold price (XAU/USD) extends its upside to around $2,720 during the early Asian session on Monday. The uncertainty surrounding tensions in the Middle East and the US presidential election boosts the safe haven flows. 

The uptick in the precious metal is bolstered by ongoing geopolitical tensions in the Middle East, uncertainties around the US elections and easing monetary policy expectations from the US Federal Reserve (Fed). "With the conflict intensifying – particularly following Hezbollah's announcement to escalate the war with Israel – investors are flocking to gold, a traditional safe-haven asset," noted Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. "Adding to the momentum, concerns around the U.S. presidential election and anticipation of looser monetary policies have further fuelled the rally," Zumpfe added.

Furthermore, the prospects of further Fed rate cuts continue to underpin the Gold price. The US central bank lowered its interest rates for the first time in more than four years in the September meeting. According to the CME FedWatch Tool, the odds of an additional quarter-point rate cut in November stand at more than 90%. Lower interest rates generally reduce the opportunity cost of holding non-yielding bullion, lifting the Gold price. 

On the other hand, China’s sluggish economy could undermine the precious metal. China's economy grew in the third quarter (Q3) at the slowest pace since early last year. The National Bureau of Statistics reported on Friday that the GDP expanded 4.6% YoY in Q3 versus 4.7% prior. This figure was below the government's "around 5%" target for this year. This, in turn, might weigh on the yellow metal as China is the world's largest gold consumer.

• Gold price loses momentum to around $2,650 in Monday’s early Asian session. 
• Weaker Chinese economic data undermine the Gold price. 
• The US PPI report and Middle East geopolitical risks could support the yellow metal. 

Gold price (XAU/USD) edges lower to $2,650, snapping the two-day winning streak during the early Asian session on Monday. The downbeat Chinese economic data and firmer Greenback weigh on the precious metal. Nonetheless, the prospects of further interest rate cuts this year and safe-haven demand might cap its downside. 

China's deflation pressure increased in September. The Consumer Price Index (CPI) inflation unexpectedly eased in September, while the Producer Price Index (PPI) fell more than expected during the same period, highlighting the need for more stimulus measures. The persistent deflationary pressure in China is likely to exert some selling pressure on the yellow metal, as China is the world's largest Gold consumer. 

The US Producer Price Index (PPI) was unchanged in September, indicating a still-favorable inflation outlook and supporting the bets of the Federal Reserve (Fed) rate cut in November. "The PPI numbers leaned friendly for the precious metals market bulls and suggest the Fed remains on track for two quarter-point interest rate cuts this year," said Jim Wyckoff, senior market analyst at Kitco Metals.

Additionally, the rising geopolitical tensions in the Middle East have triggered the fear of wider war in the region, boosting the traditional safe-haven assets like the Gold price. On Sunday, at least four Israeli soldiers were killed and more than 60 people were injured by a drone attack in north-central Israel, per CNN. The number of injuries makes the attack one of the bloodiest on Israel since the war started last October. Hezbollah has claimed responsibility for the attack.

• Gold price attracts some sellers to $2,650 in Monday’s early Asian session. 
• US Nonfarm Payrolls rose by 254,000 in September vs. 159,000 prior, as expected. 
• Rising Middle East geopolitical tensions could boost the safe-haven flows, benefiting the Gold. 

Gold price (XAU/USD) trades in negative territory for the fourth consecutive day near $2,650 on Monday during the early Asian session. The further upside in the US Dollar (USD) after the upbeat US Nonfarm Payrolls (NFP) on Friday exerts some selling pressure on the yellow metal. 

Nonfarm Payrolls (NFP) in the United States climbed by 254,000 in September, according to the Bureau of Labor Statistics on Friday. The figure topped was above August's revised 159,000 and above the market consensus of 140,000. The Unemployment Rate ticks lower to  4.1% in September, down from 2.4% in August. These encouraging US reports dampen the hopes that the US Federal Reserve (Fed) will cut the deeper interest rate, which lifts the Greenback and weighs on the USD-denominated Gold price. 

Chicago Federal Reserve Bank President Austan Goolsbee said on Friday that he thinks the recent employment data was "superb" and noted that additional reports like this would increase his confidence that the US economy has reached full employment with low inflation. 

On the other hand, the escalating geopolitical tensions in the Middle East might boost the price of gold, a traditional safe-haven asset. Israel struck Hezbollah targets in Lebanon and the Gaza Strip on Sunday ahead of the one-year anniversary of the October 7 attacks that launched the conflict. Israel's defense minister proclaimed all possibilities for reprisal against Iran.

• Gold price drifts higher to $2,665 in Monday’s early Asian session. 
• Escalating geopolitical tensions in the Middle East and Fed rate cuts support the Gold price. 
• Investors await the Chinese PMI, which is due on Monday. 

Gold price (XAU/USD) recovers to near $2,665 during the early Asian session on Monday. The geopolitical risks and firmer expectation of another oversized interest rate cut by the Federal Reserve (Fed) in November lift the precious metal. 

Israel continues to launch airstrikes on Hezbollah targets in Lebanon, killing more than 100 people and wounding over 350 others Sunday, per CNN. Israel’s assassination of Hezbollah leader Hassan Nasrallah has fuelled tensions in the Middle East and escalated the conflict along the border with Lebanon, which might boost the safe-have flows, benefiting the Gold price. 

Data released by the US Bureau of Economic Analysis (BEA) on Friday showed the headline Personal Consumption Expenditures (PCE) Price Index rose by 2.2% year-over-year in August, compared to 2.5% in July, softer than the expectations of 2.3%. Meanwhile, the core PCE jumped 2.7% over the same period, matching market estimations. On a monthly basis, the PCE Price Index increased by 0.1%, aligning with analysts' predictions.

The PCE data provided the latest sign that price pressures are easing in the US and triggered the expectation that the Fed will further cut the interest rate this year. A rate cut by the US Fed is likely to boost the appeal of the non-interest-bearing Gold price. 

Gold traders will monitor the Chinese Purchasing Managers Index (PMI) for fresh impetus. The NBS Manufacturing PMI is expected to improve to 49.5 in September from 49.1, while the Services PMI is estimated to rise to 50.4 in September from 50.3 in the previous reading. The weaker-than-expected data might weigh on the yellow metal as China's largest gold importer. 

• Gold price posts modest losses around $2,620 in Monday's early Asian session. 
• US Fed rate cut and geopolitical risks boost the precious metal.
• The positive view for US growth and stronger US economic data could weigh on the XAU/USD price. 

The Gold price (XAU/USD) trades in negative territory around $2,620 but remains near the all-time high on Monday during the early Asian session. An aggressive interest cut by the Federal Reserve (Fed) and rising geopolitical tension in the Middle East lift the Gold price, a traditional safe-haven asset. 

The Federal Open Market Committee (FOMC) slashed its interest rates by a surprise 50 basis points (bps) last week following a two-day meeting and signaled that more cuts are likely before the end of 2024. A rate cut by the US Fed is likely to boost the appeal of the non-interest-bearing Gold price.  

Additionally, fears of an escalation of tensions in the Middle East after Hezbollah vows retaliation for a pager attack provide some support to the yellow metal price. Hezbollah and Israel exchanged heavy fire on Sunday, as the Lebanese militant group launched missiles deep into northern Israeli territory after facing some of the most intense bombardment in almost a year of conflict, per CNN. 

The upside of the precious metal might be capped by the Fed’s broadly positive outlook for US growth. The Fed forecasts that the US economy will expand about 2.0% per year until the end of 2027, suggesting a soft landing profile for the economy. This, in turn, might drag the safe-haven Gold lower. 

Looking ahead, Gold traders will closely monitor the development surrounding the Middle East geopolitical risks. Furthermore, the flash reading of the US Purchasing Managers Index (PMI) will be released later on Monday. In case of the stronger-than-expected outcome, this could underpin the Greenback and exert some selling pressure on the USD-denominated Gold price. 
 

• Gold price trades in positive territory near $2,580 in Monday’s early Asian session. 
• Firmer Fed rate cut expectations and persistent geopolitical risks continue to underpin Gold price. 
• Slow momentum in Chinese economic activity might weigh on the precious metal. 

Gold price (XAU/USD) gains momentum around $2,580 during the early Asian session on Monday. The precious metal reached a fresh all-time high at $2,586 on Friday amid rising expectations of a significant Federal Reserve (Fed) rate cut. The Federal Open Market Committee (FOMC) meeting on Wednesday will be in the spotlight.

The growing speculation of an interest rate cut by the Fed after US economic data signaled a slowing of the economy has boosted the yellow metal as lower interest rates reduce the opportunity cost of holding non-yielding Gold. Financial markets are now pricing in a 48% chance of a 25 basis points (bps ) US rate cut at its upcoming meeting on September 17-18, while the odds of a 50 bps cut stand at 52%, according to the CME FedWatch tool. 

“We are headed towards a lower interest rate environment, so gold is becoming a lot more attractive… I think we could potentially have a lot more frequent cuts as opposed to a bigger magnitude,” said Alex Ebkarian, chief operating officer at Allegiance Gold. 

Additionally, the ongoing geopolitical tensions in the Middle East provide further support to the safe-haven Gold price. Israeli Prime Minister Benjamin Netanyahu said on Sunday that Yemen's Houthis will pay a "heavy price" after a missile fired by the group landed in central Israel, per the BBC. 

Nonetheless, the sluggish economy and the concerns about the economic slowdown in China might cap the upside for precious metals as China is the world's biggest producer and consumer. The Chinese Retail Sales and Industrial Production were weaker than the expectation in August. Industrial output grew at the slowest pace since March, while Retail Sales had their second-slowest month of the year. 

• Gold price trades in negative territory around $2,500 in Monday’s early Asian session.
• The US Core PCE inflation remains unchanged at 2.6%, matching June's increase, below the consensus of 2.7%. 
• Any signs of a Chinese sluggish economy might weigh on the Gold price. 

Gold price (XAU/USD) softens near $2,500 on Monday during the early Asian trading hours, pressured by the stronger US Dollar (USD). However, the downside of the yellow metal might be limited as a September interest rate cut by the US Federal Reserve (Fed) remains in play.

The Commerce Department revealed on Friday that the US Personal Consumption Expenditures (PCE) Price Index rose 0.2% MoM in July, matching the market expectation. On a yearly basis, the PCE inflation remained unchanged at 2.5% in July. Meanwhile, the core PCE, excluding volatile food and energy prices, increased 0.2% for the month but rose 2.6% from a year ago. The annual figure was slightly softer than the 2.7% expected. 

Alex Ebkarian, chief operating officer at Allegiance Gold, said that the PCE report confirmed inflation is no longer the Fed's main concern, as they have shifted their focus to unemployment data, which further validates the potential rate cuts in September.

Traders slightly raised bets of a 25 basis points (bps) rate cut by the Fed in September to around 70%, with a 50 bps reduction possibility standing at 30% following the PCE inflation report, according to the CME FedWatch tool. The firmer Fed rate cut expectation is likely to support the Gold price in the near term as lower interest rates reduce the opportunity cost of holding non-yielding gold.

Israel’s largest labor group is planning a nationwide strike on Monday, the strongest push yet to force the government into a Gaza cease-fire and secure the release of hostages held by Hamas, per Bloomberg. Investors will closely watch the developments surrounding the conflicts in the Middle East. Any signs of escalating tensions in the region could boost the safe-haven demand, benefiting the Gold Price. 

However, physical gold demand concerns and the sluggish economy in China might cap the precious metal’s upside as China is the world’s top buyer for Gold. The Chinese Caixin Manufacturing PMI for August is due on Monday, and is estimated to improve to 50.0 versus 49.8 prior. The weaker-than-expected outcome could weigh on the XAU/USD price. 

• Gold price gains momentum around $2,515 in Monday’s early Asian session. 
• Fed’s Powell said "the time has come" for the US Fed to begin lowering interest rates.
• The escalating tensions in the Middle East might further boost safe-haven assets like Gold. 

Gold price (XAU/USD) holds positive near $2,515 an ounce during the early Asian session on Monday amid the weaker US Dollar (USD) and dovish comments from the Federal Reserve (Fed). The uptick of the yellow metal is bolstered by the speech by Fed Chair Jerome Powell, signalling that time has come for interest rate cuts starting this September.

Fed Chair Jerome Powell delivered the dovish message at the Kansas City Fed's annual economic symposium in Jackson Hole on Friday, which has weighed on the USD broadly. Fed’s Powell said that "the time has come" for the central bank to begin lowering interest rates. Powell acknowledged recent softness in the labor market in his speech and stated that the Fed did not "seek or welcome further cooling in labor market conditions.” 

Financial markets have fully priced in a 25 basis points (bps) rate cut, while the chance for a deeper cut stands at 36.5%, up from 24% last week, according to the CME FedWatch Tool. The growing expectations of easing monetary policy by the Fed might further support the precious metal as it makes gold more attractive for other currency holders.

Furthermore, Hezbollah launched hundreds of rockets and drones at Israel early on Sunday, as Israel's military said it carried out a wave of pre-emptive strikes across southern Lebanon to thwart a large-scale rocket and drone attack by Hezbollah, per Reuters. The ongoing geopolitical tensions in the Middle East might boost the safe-haven asset demand, benefiting the Gold price. 

• Gold price holds steady near $2,515  in Wednesday’s early Asian session. 
• The softer USD and bets of Fed easing monetary policy support the Gold price. 
• The Fed Chair Powell's speech at the Jackson Hole symposium will take centre stage on Friday. 

Gold price (XAU/USD) trades flat around $2,515 during the early Asian session on Wednesday. However, the weaker US Dollar (USD) and the expectation that the Federal Reserve (Fed) will likely cut interest rates in September might underpin the yellow metal. 

The weaker US Dollar amid expectations of easing monetary policy by the Fed ahead of the Jackson Hole symposium might provide some support to the precious metal as it makes gold more attractive for other currency holders. Markets have priced in about a 67.5% possibility of the Fed cutting interest rates by 25 basis points (bps) in September, according to the CME FedWatch Tool. 

"The primary drivers of the gold price move are financial investment demand, particularly with ETF buying improving and overall improved sentiment as the expectations of the Fed easing cycle begin in September," said Aakash Doshi, head of commodities, North America at Citi Research. 

Traders will closely watch Fed Chair Powell's speech at the Jackson Hole symposium on Friday for more cues on rate cuts. Dovish comments from the Fed officials might further lift the yellow metal. Furthermore, the ongoing geopolitical tensions in the Middle East might boost the safe-haven asset demand, benefiting the Gold price. 

On the other hand, signs of weaker physical demand in China might cap the upside for Gold. Data showed that the country’s Imports of the precious metal in July fell 24% to 44.6t, the lowest level in more than two years. The sluggish economy in China could weigh on the precious metal as China is the largest producer and consumer of gold.