At the beginning of last week, the gold world received some good news. The Chinese central bank started buying 5 tonnes again in November after 11 months of waiting. Analysts believe that this data highlights China’s important role in the gold market and encourages other central banks to buy gold in 6.
As of last week’s close, global gold prices quickly fell to USD 2.648/ounce due to persistent inflation pressure affecting expectations of monetary policy easing from the US Federal Reserve ( Fed).
According to CME’s FedWatch tool, the market strongly expects an interest rate cut of 25 basis points after the last Fed meeting of 2024 on December 17-18. Many obstacles to the long-term monetary policy easing cycle in 12 will affect gold prices.
Analysts estimate that in the 10 days before a 25 basis point interest rate cut at this week’s Fed meeting, gold will rise in the short term and then fall again.
Naeem Aslam, chief investment officer at Zaye Capital Markets, said gold investors should prepare for the possibility of weakening gold prices over the next 10 days as the Fed tempers downside expectations interest rates.
Lukman Otunuga, chief market analyst at FXTM, said precious metals remain under pressure from rising Treasury yields ahead of the Fed’s final policy meeting in 2024.
The main question is the future political message and signal that will come from this meeting. If the Fed’s message is not as strong, or less so next year, it could limit gold’s upside potential.
Carley Garner, co-founder of brokerage firm DeCarley Trading, said that gold prices cannot maintain stability above the price level of 2.700 USD/ounce before the new year.
In a positive direction, Ms. Michele Schneider, Chief Strategist at Marketgauge, said that in the short term, gold will fluctuate around 2.600-2.800 USD/ounce. As for the longer term, she noted that in addition to the Fed’s monetary policy, global interest rates continue to fall. At the same time, global debt continues to rise. These are bullish factors for gold.
In the domestic market, gold prices are strongly influenced by global gold prices. Last week, SJC gold rings and bars rose by millions of dong in a single session, but then fell sharply at the end of the week due to the influence of falling global gold prices. gold.
Over the next 10 days, domestic gold will continue to be influenced by global gold prices. Domestic investors need to monitor global price fluctuations to make investment decisions.
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