Gold is falling today as the market rethinks some of the aggressive rate cuts that are built into Fed funds futures in 2024. The market now sees 107 basis points in easing, down about 20 bps since Friday’s stronger non-farm payrolls report.
The US dollar is generally stronger today, including a 1% gain against the yen but other pairs are only up modestly and not enough to account for the weakness in gold.
The area to watch is $1950-$1920 where the 55-day, 100-day and 200-day moving average all lurk, along with the November low. Today the pair took out the minor uptrend from the October low, which should signal more selling.
Seasonally, there is a tailwind for gold through February and that should also provide some support.
gold daily