Dollar Retreats Despite US Government Reopening
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Dollar Retreats Despite US Government Reopening

Published: 14 November 2025,07:11

Published: 14 November 2025,07:11

Daily Market Analysis New

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Key Takeaways:

*Dollar Index extends losses despite President Trump signing the deal to end the historic shutdown.

*IMF forecasts a slowdown in U.S. growth from 2.8% to 2% in 2025, keeping investors cautious.

*Gold remains supported by safe-haven demand amid lingering fiscal and economic uncertainty.

Market Summary:

The Dollar Index (DXY) continued to retreat even after President Trump signed the legislation to end the longest U.S. government shutdown. While reopening federal agencies restores short-term stability, concerns over the broader U.S. economic outlook persist. The IMF projects U.S. growth to slow from 2.8% to 2% in 2025, reinforcing cautious sentiment.

Market participants are also mindful that key economic data were delayed during the shutdown, leaving uncertainties that may influence Federal Reserve decisions. Despite these concerns, U.S. Treasury yields have rebounded modestly, while the market-based probability of a December rate cut has fallen below 50% following mixed signals from Fed officials. San Francisco Fed President Mary Daly maintained a dovish stance, whereas Minneapolis Fed President Neel Kashkari highlighted elevated living costs, keeping the policy outlook nuanced and market sentiment cautious.

Gold (XAU/USD) initially surged on the back of reopening optimism combined with lingering concerns over U.S. economic fundamentals. However, prices pulled back slightly after several Fed officials signaled caution over potential rate cuts. Despite short-term fluctuations, the long-term outlook for gold remains constructive, supported by ongoing uncertainties regarding the sustainability of U.S. fiscal spending and the risk of future government shutdowns. Investors are keeping a close eye on upcoming economic data, fiscal developments, and Fed guidance, which will continue to shape gold’s safe-haven appeal.

Technical Analysis

GOLD, H4

Gold is currently trading higher and testing a key resistance level at 4220.00. A successful breakout above this level could signal bullish continuation, targeting the next resistance at 4370.00. However, the MACD has formed a death cross, suggesting rising bearish momentum, while the RSI at 63 has retreated sharply from overbought territory, indicating the possibility of a short-term technical correction.

If bearish momentum persists, gold may retrace to 4115.00, with further downside potential toward 3925.00, where it could consolidate before the next move. Traders should closely monitor price action around 4220.00—a decisive break favors bulls, while failure to breach resistance may trigger a pullback, presenting potential short-term selling or range-bound opportunities.

Resistance level: 4220.00, 4370.00

Support level: 4115.00, 3925.00

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