Dollar Gains on Euro Weakness and Higher Crude Prices - TradingView

AI desk brief

December COMEX gold closed down $21.00/oz (-0.50%) and silver was nearly flat at -$0.032/oz (-0.06%) as stronger equities cut safe-haven demand and higher crude prices lifted inflation expectations, reinforcing a more hawkish policy backdrop. The dollar also firmed on euro weakness tied to French political unrest, while the Bundesbank’s warning that inflation risks are tilted to the upside was cited as negative for precious metals.

Offsetting the bearish macro tone, gold initially benefited from France-related risk aversion, stronger-than-expected China data supported silver, and ETF demand remained constructive with gold ETF long holdings at a 4-year high and silver ETF long holdings at a 6.5-month high. Central bank buying also stayed supportive, with China’s PBOC adding 740,000 ounces in September to 77.47 million troy ounces, the 23rd straight monthly increase.