Gold Soars to November Highs, Pushed by Falling USD & US Yields

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Gold surged more than 1% to hit a two-month high near $2,750 on Tuesday as investors looked for ways to reduce risk following President Donald Trump's remarks on tariffs.


The US dollar, which had initially risen, turned negative with the US Dollar Index (DXY) trading lower at 108 points.


At 9.40 am, gold was at $2,747.81, up 0.10% since it opened early Wednesday in Asian trading.


Donald Trump's re-emergence has increased market risk as investors await a glimpse of the tariffs imposed on Canada and Mexico when he signs a tranche of executive orders.


Nevertheless, the precious metal continued to trend higher above key resistance at $2,730.


In addition, US Treasury yields are falling in the near term, which should continue to support gold prices.


In the Middle East, a ceasefire agreement between Israel and Hamas was violated when the Israeli army launched an operation in the West Bank city of Jenin. In response, Hamas called for increased defenses and attacks.


This week, the US economic docket will feature Initial Jobless Claims data, S&P Global Flash PMI and housing data.

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