December 23, 2024
New Delhi, India
Gold prices (XAU/USD)
Gold prices (XAU/USD) remained under pressure during the early European session on Monday, trading near $2,630. The precious metal struggled to capitalize on last week’s modest recovery from a one-month low as mixed market forces influenced its trajectory.
Key Drivers of Gold Price Movement:
- Fed’s Hawkish Signals: The Federal Reserve’s indication of slower rate cuts in 2025 has kept US Treasury yields elevated, dampening gold’s appeal.
- USD Trends: The US Dollar retreated from a two-year high touched last week, providing mild support for gold.
- Geopolitical Risks: Persistent conflicts in Ukraine and the Middle East continue to boost gold’s safe-haven demand.
- Market Sentiment: Positive equity market sentiment limits gains for the non-yielding metal.
US Economic Indicators in Focus:
The release of the Conference Board’s Consumer Confidence Index later today is expected to provide further direction. Last week’s US economic data showed mixed signals, with Personal Income growth decelerating to 0.3% in November, while Consumer Spending rose by 0.4%.
Global Tensions and Market Impacts:
- Middle East Conflict: Israeli airstrikes in Gaza caused fatalities and intensified geopolitical risks.
- Russia-Ukraine War: Russian President Vladimir Putin vowed retaliation after a major Ukrainian drone attack damaged infrastructure in Kazan.
Despite supportive factors like geopolitical tensions and USD weakness, gold’s movement remains capped by elevated bond yields and market optimism. Traders are advised to wait for a decisive breakout before anticipating significant price moves.
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.
