The decline of the US dollar supports a moderate rebound in gold prices The Federal Reserve remains cautious about further interest rate cuts

28 Nov, 2024

On Wednesday, due to investors' cautious attitude towards Trump's tariff commitments, the US dollar index fell to a two-week low and ultimately closed down 0.75% at 106.07.

On Wednesday, due to investors' cautious attitude towards Trump's tariff commitments, the US dollar index fell to a two-week low and ultimately closed down 0.75% at 106.07. The benchmark 10-year US Treasury yield closed at 4.2640%; The two-year US Treasury yield, which is more sensitive to monetary policy, closed at 4.2370%.

Gold prices rose slightly on Wednesday, rebounding from a low hit in over a week on the previous trading day. Due to the weakening of the US dollar, gold prices reached a high of around $2658 in intraday trading on Wednesday. However, after data showed stagnant inflation progress, suggesting that the Federal Reserve may be cautious about further interest rate cuts, gold prices narrowed their gains and closed at $2635.80 per ounce. The US market will be closed on Thursday due to the Thanksgiving holiday, and based on the experience of the past few years, the gold price tends to fluctuate narrowly this trading day.

Due to the ceasefire agreement between Israel and Hezbollah taking effect on Wednesday, the international market experienced a slight decline. WTI crude oil ultimately closed down 0.30% at $68.72 per barrel; Brent crude oil closed down 0.18% at $72.32 per barrel.

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