Strong USD Pressures Gold Prices, Market Remains Volatile

2024-12-23 02:31:54

(MENAFN- Investor Ideas) Investorideas ( ), a go-to platform for big investing ideas releases market commentary from Tito Iakopa - Commercial Director at FlowCommunity.

Gold prices were under some pressure, after a rebound toward the end of last week, as it faced a stronger dollar today. The US currency could continue to see a strong momentum after multi-month gains and a more pronounced hawkish stance from the Federal Reserve.

However, gold could benefit from the softer-than-expected PCE inflation report that has moderated to a certain extent the fears regarding the Federal Reserve's stance. While the Fed projected only two rate cuts for next year, a reduction from September's forecast of four cuts, the broader outlook for gold could remain bullish. The market could continue to see support from central bank purchases and from geopolitical risks.

Looking ahead, market attention is on the anticipated effects of Donald Trump's presidency. The potential market impact of his early presidential actions could introduce additional volatility, further contributing to gold's appeal as a safe-haven asset and potentially driving prices higher.

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