October 14, 2024
New Delhi, India
Gold Prices
The Gold price (XAU/USD) continued its upward trend on Monday, rising to $2,667—its highest level in over a week during the European session. This marks the third consecutive day of gains for the yellow metal, driven by expectations of the Federal Reserve easing interest rates amid a favorable inflation outlook.
Key Drivers:
- Fed Rate Cut Expectations: Markets are pricing in over a 90% chance of a 25-basis-point rate cut by the Fed in November, fueling demand for non-yielding assets like gold.
- Geopolitical Tensions: Escalating conflicts in the Middle East have also bolstered gold’s safe-haven appeal.
- China’s Economic Data: China’s CPI data missed expectations, adding support for gold as a hedge against global uncertainties.
Factors Capping Gains:
- US Dollar Strength: The US Dollar and Treasury yields remain elevated due to bets on less aggressive Fed easing, potentially limiting further upside for gold.
- Market Sentiment: Optimism over China’s economic revival efforts has contributed to a positive risk tone, tempering gold’s rise.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
