Why Gold retreat in the past days?
Traders believe that tax reforms could bolster growth, adding pressure on the Federal Reserve to raise interest rates, they term it as the “Trumpflation” trade.
Meanwhile, the U.S. central bank is to hold its final policy meeting of the year on Dec. 12-13. The meeting could seat with interest rate futures pricing in a 100% chance of a rate hike, according to Investing.com’s .
In fact, the report claim that gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar.
Moreover, in the Comex, the report posted lost 18.9 cents, or 1%, to $17.04 a troy ounce. Among other precious metals, shed 0.6% to $928.95, while slumped 0.3% to $992.12 an ounce. The yellow metal meanwhile declined 2.0 cents, or 0.7%, to $3.137 a pound.
Hence, traders monitoring closely the trend of the yellow metal and other metals and how it will yield and recover, thus has the effect on trade flow.