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.
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