InstaForex

November 25, 2021

Gold is more and more unhappy to sit!

 Gold traded slightly higher in the Asian session after plunging to a three -week low following rising US treasury yields.


At the time of writing, spot gold traded slightly higher at $ 1,792 per ounce, rising from the low of $ 1,788 it touched in the previous session. Gold futures were positive at $ 1,793 an ounce.


This increase may be supported by core personal consumption expenditure (PCE) price index data which confirms inflation is at a 30 -year high.



Despite rising, the yellow metal is still plagued by concerns about a faster policy tightening than the U.S. central bank, not to mention after the latest FOMC meeting minutes report also showed the Federal Reserve (Fed) was ready to do so.


Meanwhile, the US job market also showed positive developments, with the number of jobless claims falling to its lowest level since 1969 last week.


Gross Domestic Product (GDP) was slightly slower than expected, but increased from previously estimated readings for the third quarter.


With the Fed’s hawkish stance to tighten policy faster, gold prices are likely to continue to be under pressure.