Mon, November 28, 2022

Spot Gold Prices Still Bullish Despite Trade War Optimism

Wibest – Spot gold prices: Gold bars stacked up.

Gold traders are working their way to the top and looking to end the year with gains, defying all odds. Spot gold prices are now at their two-month highs thanks to the unwavering confidence of bulls.

However, many experts still doubt whether prices could continue their bullish momentum once Washington and Beijing’s trade agreement comes out. As promised by US officials, including President Trump himself, their trade pact is ready.

The great sentiment is supporting traders’ hope, boosting stocks and crude, but also weakening safe-haven assets such as the Japanese yen. However, that isn’t the case for spot gold prices as prices continue to soar in trading sessions.

The lack of news this holiday season may be boosting the precious metal in trading.

The XAU/USD pair surged by 0.28% or 4.17 points this Monday’s trading. Gold traders are starting 2019’s last week in green territories as they take advantage of the faltering buck.

Wibest – Spot gold prices: Gold bars stacked up/Spot gold prices advanced from its previous close of $1,510.42 to $1,514.59 as of writing.

XAU/USD bulls floored their gas pedals before and after Christmas day despite Trump’s comment prior. The pair gained altitude on December 24 and 25, respectively, but its ascent momentarily slowed down on Friday.

Other Indices

The XAU/USD pair, unfortunately, didn’t share the same fate as other indices.

The Philadelphia Gold/Silver contract fell by 0.90% or 0.96 points on Monday’s trading. Meanwhile, gold futures slipped down by 0.02% or 0.25 points in sessions.

Spot gold prices didn’t share the same fate with other precious metals in trading as they saw different directions.

The platinum contract nearly steadied, sliding down only by 0.06% or 0.60 points today. Then, palladium futures dropped by 0.14% or 2.60 points in sessions.

Only the white, lustrous metal, silver, was able to secure gains in sessions along with the volatile yellow metal. The silver contract rose 0.22% or 0.040 points this Monday’s trading sessions.

Don’t Discount the Fed

Wibest – Spot gold prices: Gold bars stacked up on top of US dollar bills.The US Federal Reserve may not be making headlines now, but it’s one of the main supporting factors for gold.

Spot gold prices have taken big hits from Brexit and trade war news, steeply falling and rallying this year thanks to those. But that doesn’t mean central banks such as the US Fed should look insignificant as it also plays vital roles.

Some traders still believe that there will be more rate cuts coming next year despite progress in the trade war. Should that be the case, gold and mining equities will most likely remain on the radar.

More easing and forward guidance would be a great help for the highly volatile asset. And inflation targeting and increasing asset purchases will be on the table next year for the US Fed.

Still, it has close connections to the trade war of the United States and China again. So, if the two giants finally reconcile and mutually agree on a deal, the economy’s recovery looks bright.

But what would increase the chances for a more positive outlook for spot gold prices is increasing inflation targets. That would increase the chances of a more aggressive monetary policy to reach central bank goals.



Will Solana (SOL) Develop into the Next EOS and Disappear? Major layer

The Stock Market is Spiraling Upwards

The Stock Market’s Reaction to The Fed Outlook Resulted in A Positive


Oil Has Dropped Below $2 per Barrel Oil futures fell more than


Leave a Comment

Your email address will not be published.

User Review
  • Support
  • Platform
  • Spreads
  • Trading Instument



Stock Report – stock exchange background – WibestBroker

Futu’s Net Profit Rises 23%, Despite Drop in Trading Vol

Futu, an online brokerage that provides Chinese investors with access to the Hong Kong and US stock markets, has released its unaudited third-quarter financial results. The company reports a 12.4% increase in revenue, reaching