(MENAFN- Investor Ideas) Investorideas ( ), a go-to platform for big investing ideas releases market commentary from Quasar Elizundia, Expert Research Strategist at Pepperstone.
"Gold prices are experiencing their worst operational week since 2021, adding to a bearish performance that has emerged after the yellow metal reached new historical highs. Over the past few weeks, this trend has left XAU/USD with a value loss of nearly 8%.
The strength of the US dollar and the shift in expectations regarding federal Reserve rate cuts have pressured a precious metal that had been in a significantly extended bullish trend, reflecting gold's sensitivity to monetary policy expectations. Recently, Fed Chair Jerome Powell emphasized there is no rush to cut rates, pointing to the "notable" performance of the economy.
The economic outlook is also being shaped by expectations surrounding the new Trump administration, which may pursue policies of higher trade tariffs, tax cuts, and deficit-driven public spending. Such an approach could trigger higher inflation and borrowing costs, leading to tighter monetary policy and reducing gold's comparative appeal.
Recent data on the Consumer Price Index (CPI) and the Producer Price Index (PPI) have shown a stall in inflation reduction, prompting investors to reconsider the likelihood of a rate cut in December. In the short term, gold's outlook may continue to face negative pressures, with upcoming economic data potentially further influencing market sentiment. However, in the medium to long term, I believe gold remains a key asset for hedging against economic uncertainty.
Additionally, the potential introduction of new import tariffs targeting economic partners like China and the European Union could disrupt global trade, strengthening gold's appeal as a safe-haven asset amid growing economic uncertainty."
About Investorideas - Big Investing Ideas
Investorideas is the go-to platform for big investing ideas. From breaking stock news to top-rated investing podcasts, we cover it all. Our original branded content includes podcasts such as Exploring Mining, Cleantech, Crypto Corner, Cannabis News, and the AI Eye. We also create free investor stock directories for sectors including mining, crypto, renewable energy, gaming, biotech, tech, sports and more. Public companies within the sectors we cover can use our news publishing and content creation services to help tell their story to interested investors. Paid content is always disclosed.
Disclaimer/Disclosure: Investorideas is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact management and IR of each company directly regarding specific questions. More disclaimer info: More disclaimer and disclosure info Learn more about publishing your news release and our other news services on the Investorideas newswire /News-Upload/ Global investors must adhere to regulations of each country.
MENAFN15112024000142011025ID1108891229
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.