Ella 
Gold prices (XAU/USD) remain on a strong selling tone during European morning trade and are currently trading around the low end of the daily trading range around $2,629. It was the first decline in the past five days and was driven by a number of factors. Investors now appear to believe that U.S. President-elect Donald Trump’s tariff plans could reignite inflation and limit the Federal Reserve’s room to cut interest rates. That, in turn, sparked a new surge in U.S. Treasury yields and drove flows out of the non-yielding gold.
Meanwhile, a rebound in U.S. bond yields has helped the U.S. dollar (USD) regain positive momentum after recently falling to near three-week lows, another factor denting demand for gold. Still, trade war concerns, coupled with ongoing geopolitical tensions and a weaker risk tone, provided some support for the safe-haven precious metal. Traders also appear reluctant, choosing to wait and see ahead of this week’s key U.S. macro data, which could provide clues on the Fed’s path to cutting interest rates and provide new directional impetus for gold/dollar.
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