Gold Prices Risk Larger Rebound as Bearish Sequence Unravels

Gold Talking Points

Gold holds a narrow range even as the ongoing shift in U.S. trade policy shakes up the dollar, and the precious metal may continue to consolidate over the remainder of the week as the recent series of lower highs lows snap ahead of the October-low ($1183).

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Gold Prices Risk Larger Rebound as Bearish Sequence Unravels

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It seems as though the current environment will continue to curb the appeal of bullion despite the gridlock in Congress as the Federal Reserve shows little to no interest in scaling back its hiking-cycle.

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Expectations for higher U.S. interest rates may keep gold prices under pressure ahead of the December meeting as the Federal Open Market Committee (FOMC) is widely anticipated to deliver a 25bp rate-hike, and fresh updates from Chairman Jerome Powell Co. may ultimately produce headwinds for the precious metal if a growing number of central bank officials see a risk of overshooting the longer-run interest rate forecast of 2.75% to 3.00%.