Gold prices fell sharply and the euro hit a new low against the dollar due to Trump's policies

From Investing.com: 2024-11-12 03:27:00

Gold prices fell by over 2.4% to settle near $2,600 support level. Traders anticipate US Federal Reserve to soften stance on interest rates due to Trump’s economic policies. The US dollar hit new highs after Trump’s election victory, prompting gold sales. There is a 65% chance of a 25-basis-point rate cut at the next Fed meeting. XAU/USD may continue to decline in the short term, potentially breaking below $2,600 support level.

The euro decreased by 0.6%, reaching a fresh six-month low against the US dollar. Trump’s policies could exert downward pressure on EUR/USD due to widening interest rate differentials. European Central Bank may cut rates more aggressively. EUR/USD bears should be cautious as the pair may experience a sharp rebound. EUR pairs might experience additional volatility due to Germany’s ZEW Economic Sentiment Index report.

Japanese yen declined as DXY reached a four-month high due to ‘Trump Trades’. Expectations of a second term for Trump and potential regulatory rollbacks have driven optimism. Bank of Japan maintained projection to raise benchmark interest rate towards 1% by the second half of 2025. USD/JPY was moving sideways, with key economic releases expected to impact pair’s movement. Japanese Producer Price Index and US Consumer Price Index reports could influence USD/JPY movement.



Read more at Investing.com: Gold Continues to Fall, Euro Remains Under Pressure Amid Trump-Driven Volatility