Gold Prices Reach 2-Week High Amid Global Tensions and Fed Rate Expectations
Gold prices stayed steady near a two-week high on Wednesday due to rising global tensions and expectations of a U.S. Federal Reserve interest rate cut next week.
Rising Global Tensions
Spot gold increased slightly by 0.02% to $2,694.07 as of 12:55 PM AST, reaching its highest level since November 25 earlier in the day.
Gold prices are supported by increasing geopolitical tensions, as gold is often seen as a safe investment during times of political or economic uncertainty.
On Tuesday, Israel reported over 350 airstrikes in Syria within 48 hours, targeting military sites such as anti-aircraft systems, airfields, and weapons production facilities. The strikes aimed to stop strategic weapons from being used by rebel groups linked to former Syrian president Bashar al-Assad.
Separately, South Korean police raided the presidential office on Wednesday to investigate a martial law order issued recently. The search included records related to a Cabinet meeting held before President Yoon Suk Yeol announced the martial law decree.
Anticipated Fed Rate Cut
The Federal Reserve is widely expected to reduce interest rates by 0.25% at its December 18 meeting.
A Reuters survey found that about 90% of economists expect this rate cut. Many also predict the Fed will pause rate adjustments in late January amid worries about inflation.
Investors are watching U.S. inflation data, which is expected to show a 0.3% rise in November. Kyle Rodda, a financial analyst at Capital.com, told Reuters that if inflation meets expectations, it could encourage the Fed to move forward with the rate cut, which might boost gold prices.
Positive Gold Predictions
Goldman Sachs remains optimistic about gold, suggesting that prices could still hit $3,000 per ounce by the end of 2025, even if the U.S. dollar stays strong, according to Reuters.
Published: 11th December 2024
For more article like this please follow our social media Twitter, Linkedin & Instagram
Also Read:
AD Ports earns A1 rating from Moody’s with stable outlook
Talabat Shares Fall After Early Gains on Dubai Stock Exchange
Fitch confirms Saudi Aramco’s A+ rating with stable outlook
