Gold prices saw a slight increase today, with XAU/USD trading at $1992 as US markets took a break for Thanksgiving, resulting in lower trading volumes. The precious metal has been supported by a decline in US Treasury yields and a weakening of the US dollar, maintaining its position in the tight range of $1990-$2000.
From the beginning of November, US Treasury bond yields have experienced a significant drop, decreasing sharply by over six percent or nearly thirty basis points. Concurrently, the US dollar has shown a marked decrease against other major currencies, with the DXY index falling from above 106 to below 104, indicating a nearly three percent decline.
Earlier this week, gold momentarily surpassed the $2000 mark and has since remained near that level. This performance comes even as market participants are gearing up for the release of upcoming S&P Global (NYSE:SPGI) PMIs, which could signal economic challenges and potentially affect Federal Reserve policy decisions on interest rates.
Despite expectations of continued rate hikes by the Federal Reserve and an approximate eighty-five basis points reduction projected by money market futures for next year, gold's path appears steadfast. Technical analysis suggests that if gold manages to break past the $2000 threshold again, it could encounter potential resistance around $2010.
Investors are closely watching these developments as they can have significant implications for the price movements of gold and other key financial indicators.
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