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Gold crashes as US$ surges, focus on US inflation data

Gold prices affected by advancing US Dollar Index and rising Treasury yields following Trump's election victory. Market adjusts to less dovish Fed outlook with rate futures indicating lower chances of a December rate cut.


Gold ETFs experience significant outflows, signaling investor shift toward riskier assets amid geopolitical tensions.


Gold prices dropped below $2,600 for the first time since mid-September on Tuesday as the Greenback extended its gains and hit a six-month high, according to the US Dollar Index (DXY). Rising US Treasury yields also weighed on Gold prices. At the time of writing, the XAU/USD trades at $2,599, down 0.77%.

 

Investors continued to digest former US President Donald Trump's victory. Attention turned to his first cabinet appointments, which would give some cues regarding pushing his policies of lowering taxes, imposing tariffs, and fighting illegal immigration.

 

On Tuesday, news emerged that Mike Waltz had been named the National Security Advisor and Marco Rubio would be appointed Secretary of State. Waltz and Rubio are known for their tough stances on China, hinting that tariffs would likely be imposed.



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