Gold (XAU/USD) saw a slight dip to around $2,645 during the early Asian session on Monday, pressured by a broad recovery in the US Dollar. This follows a challenging month for the precious metal, which posted a 3% decline in November, its largest loss since September 2023. The drop was largely driven by expectations that a potential victory for US President-elect Donald Trump would prompt a more cautious stance from the Federal Reserve on rate cuts, which in turn supported the Greenback and weighed on gold, priced in USD.
However, ongoing geopolitical tensions are providing some support to gold, a traditional safe-haven asset. Recent airstrikes by Russian and Syrian jets on Syrian rebels, following the capture of the country’s second-largest city, have contributed to heightened global uncertainties. Ole Hansen, head of commodity strategy at Saxo Bank, noted that such global risks continue to drive demand for gold as a safe-haven.
Market participants are now eyeing the release of the US ISM Manufacturing Purchasing Managers’ Index (PMI) on Monday for fresh market cues, with the index expected to rise to 47.5 in November from 46.5. Attention will shift to the US Nonfarm Payrolls (NFP) report on Friday for further insights into the economy.
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