The dollar continues to rise as traders anticipate a series of steep interest rate cuts next year. U.S. Treasury yields are falling, putting the dollar at risk against a range of other currencies. Thursday’s U.S. GDP data missed expectations, as did Friday’s core PCE data. Both news supported the dollar lower.
Gold prices rose and hit $2,070 an ounce after the U.S. data. It gave back some of its gains on Friday. A weaker U.S. dollar and lower U.S. Treasury yields have bolstered gold’s appeal and renewed its attempt to hit a December 4 high of $2,147 an ounce. This is expected to occur in early 2024.
Retail trader data shows that the net long ratio is 59.65%, and the long-short ratio is 1.48:1. The number of net longs decreased by 6.22% from yesterday and increased by 1.59% from last week, while the number of net longs decreased by 6.22% from yesterday and increased by 1.59% from last week. Traders’ net short positions increased 2.46% from yesterday and 5.68% from last week.
U.S. stocks continued to bear risks, closing just below recent multi-year highs on Friday. Sentiment in the equity space remains positive, with the index mix set to see a fresh push higher when early January trade returns.