Last week, the dollar fell sharply at the beginning of the week due to reports that Scott Bessent, known for focusing on fiscal discipline, was nominated as the next Treasury Secretary under the new U.S. administration. Gold also dropped from around $2,720 to about $2,616.
After that, gold gradually recovered to about halfway back to its previous level as the gap was filled. It seems like the buying back has mostly settled for now, and with Thanksgiving over, market positions appear to be lighter in the short term.
This week, key data such as the U.S. employment report and the ISM index will be released. If these reports lower expectations for the Federal Reserve to cut interest rates, gold prices might explore lower levels again. However, since the chance of a December rate cut has already decreased, the dollar’s potential for further gains seems limited. Gold’s downside is expected to be around the $2,600 level, which was last week’s low.
Still, market participation remains low. If gold clearly breaks below $2,600, the $2,550 level could also come into focus.
Gold and Dollar Forecast Range for This Week: $2,677 to $2,600
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