XAUUSD rallies on safe-haven buying
Gold continued its ascent as geopolitical tensions heightened along with the appetite for safe-haven instruments. More anxiety over the Russia-Ukraine conflict saw a rally in metals, which was coupled with broader uncertainty in global markets. Then there’s the worry over inflation. In contrast, gold is traditionally viewed as a hedge against inflation; higher interest rates make gold less attractive to investors. A fall of the US dollar could compound further the Gold demand and lift offers to 2700. 2620 is the closest support on the downside.
GBPUSD remains subdued
Cable continues to struggle even though the Bank of England Governor acknowledges that inflation has come down faster than expected. With unemployment ticking higher and a progressive greenback in the past few weeks, the pound might feel more of a pinch, especially with the new government planning to keep increasing taxes. The upside risk for the currency would be an uptick in inflation, which could see the pound fall to 1.2500. Otherwise, a hawkish message could send the pair to test the recent resistance of 1.2700.
NAS 100 halts sell-off as traders await Trump cabinet
The Nasdaq Halted a five-day slide as traders kept a close eye on news around President-elect Donald Trump’s administration. Traders appear to be gauging the potential impact of a new Trump administration’s policies on the economy and the possibility that the Fed could slow down its rate-cutting campaign as we head into next year. With more fiscal spending and tax cuts expected, 2025 should be a year to remember for the index. Prices are drifting towards 20000, and 20800 is the closest resistance.
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