U.S. Dollar Rally Halts In Postholiday Trading But Gold Remains Weak
Gold prices continued to drop on Friday, hitting a fresh 9-month low at $1170.77 per ounce even though the U.S. dollar’s bull run paused today.
The precious metal plummeted about 3.6% for the week as the dollar index notched its highest level in over a decade amid rising speculations that the Federal Reserve will nudge interest rates higher next month. Higher interest rates are typically negative for non-yielding assets such as gold. Additionally, stronger greenback makes gold less affordable for buyers holding other currencies.
The dollar’s rally came to a halt on Friday. However, with economic data remaining positive, financial markets see a 93.5% chance the central bank will raise rates a quarter-point to a range of 0.5% to 0.75% during its next policy meeting in mid-December
Sell Stop at 1180.00, take profit at 1170.00, stop loss at 1185.00