Solid Gold Futures – Gold prices (XAU/USD) weakened again during Asian trading on Tuesday (Nov 10), following an earlier rally toward the US$4,150 per troy ounce resistance level. The downward pressure emerged as the US dollar strengthened slightly, with investors awaiting the release of US consumer inflation data.
The dollar has found support from growing expectations of a Federal Reserve interest rate hike, as well as uncertainty surrounding US-Iran negotiations. President Donald Trump suggested there is positive momentum toward ending the conflict, with a low probability of new attacks.
However, Iranian official Mohsen Rezaei denied reports of active negotiations, asserting that Washington must first accept several conditions set by Tehran. These conflicting statements have kept geopolitical risks elevated, sustaining demand for the dollar as a safe-haven asset.
On the economic front, the Nonfarm Payrolls report showed that the US economy added 165,000 jobs in October—well above forecasts. Figures for August and September were also revised upward, while the unemployment rate fell to 4.1%, signaling a resilient labor market.
This data reinforces the likelihood of a tightening of Fed policy. The market now assigns an over 80% probability that the US central bank will raise interest rates in December—a scenario that generally exerts pressure on gold, as the precious metal does not yield a return.
Market focus has now shifted to the US Consumer Price Index (CPI) report. This inflation data is expected to serve as a key catalyst for the dollar and the future direction of gold, particularly following the strong recovery of XAU/USD from the US$3,870 level over the past few weeks. (srh)