Both the U.S. dollar and Treasury yields are falling in the final few days before the Christmas break, giving gold an extra layer of support. Both the dollar and yields have hemmed in the bulls at points this year but they look to be fading as December draws to a close. This sets gold up for a strong race towards new highs as January dawns.
The struggling greenback has found itself in no man’s land as a result of more optimistic inflation data and a pivot towards rate cuts by the Federal Reserve. It was down 0.35% yesterday (Tuesday) while Treasury yields were also lower as expectations abound that interest rate cuts are just around the corner.
This is nothing but good news for gold and sets the stage for a very strong start to the New Year. Buy now to position yourself for success.
