The surge in USD drags gold down from the price peak!

thecekodok


Gold fell from its highs near $2,760 in Wednesday's trading as US Treasury yields rose and the USD hit a two-month high as measured by the US Dollar Index (DXY).


At 9.20am, gold was at $2,725.98, up 0.36% since it opened in early Asian trade on Thursday.


Recent market sentiment has weakened for commodity safe assets with a shift towards currencies.


The yield on the US 10-year Treasury note has risen more than 65 basis points since the Federal Reserve cut rates by 50 basis points since its September meeting amid concerns that a potential Trump victory could reverse inflation.


Meanwhile, investors seem confident that former President Donald Trump can beat Kamala Harris based on some predictive metrics on betting websites.



However, the market is also somewhat concerned that deficit spending, the use of tariffs and illegal immigration deportation schemes by the Donald Trump administration could cause an inflationary attack.


The conflict in the Middle East is easing and relieving the commodity price of crude oil by falling 0.77% to $70.69 per barrel.

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