Gold trades sideways amid thin volumes
Gold holds steady under $2000 but faces potential volatility with thin Thanksgiving volumes. Treasury yields drop as USD weakens to months-long lows.
Gold has seen subdued trading most of this week, moving sideways in a tight range between $1990 and $2000 per ounce. With US markets closed for the Thanksgiving holiday, volumes have been lower.
However, thin trading conditions can sometimes lead to unexpected price swings so caution is advised.
The precious metal has been supported by declining US Treasury yields and a weaker dollar. 10-year Treasury yields have fallen sharply since early November. The US dollar has also decreased against other major currencies, with the DXY index falling below 104, reaching lows not seen since September.
Earlier this week, gold briefly moved above $2000 before settling into its current range.
By 08:55 GMT spot gold was trading at $1,993. Upcoming economic data, including Flash PMIs later today, could impact Fed policy and gold’s path.
But despite projected 2024 rate hikes, gold seems locked into its channel for now. Technical signals suggest strong resistance remains around $2010.
