Gold Shows Uptrend, War Conflict & Fed Tone Focus on Market

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The traditional yellow metal hit $2,650 at the end of the week as the US dollar traded less volatile as the United States celebrated the Thanksgiving holiday.


The easing of geopolitical conflicts reduced gold's confidence to move higher and limited the price increase to stabilize since Tuesday.


At 11:00 am, gold prices were at $2,657.30, up 0.74% since it opened in early trading Friday in the Asian session.


Market sentiment improved on Thursday, partly due to the 60-day ceasefire between Israel and Lebanon.


However, the escalation of the Russia-Ukraine conflict could keep bullion prices above $2,600.


In addition, the threat of devastating tariffs by US President-elect Donald Trump on China, Canada and Mexico could limit the advance of the gold metal and the market will turn to the safe-haven asset of the currency, the USD.


Reuters sources said rising trade war concerns are likely to weigh on those countries and support gold's safe-haven status.


After Donald Trump's policy remarks, gold fell on risks associated with tariff threats and recent developments suggesting he has softened his rhetoric towards Canada and Mexico.

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