Search

The US dollar's six-month high pressures gold into decline; US CPI data may be a key market factor.

TraderKnows
TraderKnows
11-13

The dollar rose on tariff expectations, causing gold prices to fall for three consecutive days, as the market focuses on the upcoming release of CPI data and its impact.

On Wednesday (November 13), during the Asian market early trading session, spot gold experienced narrow fluctuations, currently trading around $2598.56 per ounce, continuing its three-day losing streak. A strong U.S. dollar has weighed on gold prices, which fell to a near two-month low on Tuesday, briefly dropping below the $2600 barrier, reaching a low of $2589.61 per ounce, and eventually closing at $2598.05. The U.S. dollar index rose to a more than half-year high, mainly driven by market optimism regarding Trump's second-term policies, with the possibility of higher tariffs leading to strong dollar demand from investors.

The strengthening dollar raised the cost of gold purchases for holders of other currencies, and U.S. Treasury yields also climbed. Analysts believe that this wave of gold adjustment may be a normal pullback within a bullish market. Technically, gold has support at $2600, and if inflation expectations heat up, gold may rise again.

Data shows that the holdings of the world's largest gold ETF - SPDR Gold Trust - continued to decline by 1.44 tons to 870.53 tons, its lowest since September 13. The market is closely watching U.S. economic data this week, including Wednesday's release of October CPI data and speeches by Federal Reserve Chairman Powell and other officials.

On Tuesday, two Federal Reserve officials stated that U.S. monetary policy still retains some level of tightening and that there is room for further rate cuts in the future, though the frequency and extent remain uncertain. Minneapolis Federal Reserve President Kashkari mentioned at an event that the Fed maintains a moderately tight stance, and further rate cuts will depend on economic performance.

The dollar rose to a six-and-a-half month high against major currencies on Tuesday, with the market expecting higher tariff policies to increase prices and narrow the Fed's room for rate cuts. The dollar index climbed 0.51% to 105.96, reaching a high of 106.17, the highest since early May. With Trump's Republican advantages in Congress, the market anticipates policies promoting tax cuts and regulatory relaxation.

Trump further warned that if the Eurozone fails to meet the predetermined purchase levels of American products, especially automobiles, it will face "significant consequences," and threatened tariffs of up to 60% on major Asian countries.

Additionally, U.S. Treasury yields hit a new high since July, with two-year yields rising to 4.367%, indicating investor caution about the inflationary pressures potentially triggered by Trump's policies, expecting the Fed's rate cut pace to slow due to inflation prospects. The market is also closely monitoring Wednesday's release of CPI data; if the inflation rate exceeds expectations, coupled with the advancement of tariff policies, bond market tensions might intensify.

Business Cooperation Skype ENG

Business Cooperation Telegram Eng

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Macroeconomics

Macroeconomics is the study of the overall economic activities of a country or region, focusing on the aggregate behavior and performance of the economy.

Organization

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Contact Us

Social Media

Region

Region

Contact