Today’s update on XAUUSD, November 7, 2023. The price of gold (XAU/USD) continued to experience a steady decline on Tuesday, remaining under selling pressure for the second consecutive day. This decline occurred throughout the early European session, bringing the gold price down to its lowest level in two weeks, below $1,970.
 
This drop is attributed to the ongoing recovery of the US Dollar (USD) since Monday when the USD hit its lowest point since September 20. Additionally, the lack of significant developments in the Israel-Hamas conflict has led investors to shy away from gold, which is often considered a safe-haven asset.
 
However, despite this, there are still risks related to the crisis in the Middle East and economic uncertainties in China and Europe that keep investors cautious. This is reflected in the general weakness of the stock market, which, in turn, supports gold prices.
 
Moreover, the decline in US Treasury bond yields, driven by expectations that the Federal Reserve (Fed) will maintain current policies in the December meeting, will limit the drop in gold prices, which do not yield returns and require caution for pessimistic traders.
 
Looking ahead, the release of US Trade Balance data on Tuesday may affect trading during the early North American session. However, the main focus will remain on the speeches of several influential FOMC members.
 
This, along with the appearance of Fed Chair Jerome Powell on Wednesday and Thursday, could provide insights into the Fed's future rate hike plans and play a significant role in influencing short-term USD movements. Additionally, geopolitical factors and broader risk sentiment will be key determinants of the future direction of gold prices.
 
Warning!
 
This is the explanation of "XAUUSD Today: November 7, 2023 - USD Dominates, Gold Plummets." This analysis is based on fundamental and technical perspectives from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich the reader's information. Always conduct independent research on other forex information to use as a reference in your trading.
 
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