Gold prices edged upward in Asia on Tuesday, driven by modest gains. Investors remain cautious due to the strengthening US dollar following the Federal Reserve's hawkish stance.
Gold prices inched higher in Asian trade on Tuesday, building on their modest gains. Investors remain cautious due to the strengthening US dollar following the Federal Reserve 's hawkish stance. The yellow metal rose 0.3% on Monday, recovering slightly after a more than 1% drop the previous week. Uncertainty persists regarding gold's future direction. Gold prices reached a one-month low on Wednesday after the Fed meeting signaled prolonged higher interest rates.
Prices have yet to fully rebound and have seen limited movements as investors analyze the Fed's rate outlook. Higher interest rates typically put downward pressure on gold as the opportunity cost of holding gold increases, making it less attractive compared to interest-bearing assets like bonds. Traders now anticipate only two quarter-point rate reductions in 2025, down from expectations of four cuts prior to the Fed meeting. This reflects continued economic resilience and stubbornly high inflation. The Fed's hawkish shift strengthened the US dollar, making it more appealing due to higher returns on dollar-denominated assets. A stronger dollar often negatively impacts gold prices, as it increases the cost for buyers using other currencies. Among industrial metals, copper prices were subdued and traded within narrow ranges. A strong dollar pressured the red metal, while analysts attributed the weakness to seasonal slowdown as industrial production and construction projects typically decrease during the year-end holidays
Gold Prices Federal Reserve US Dollar Interest Rates Industrial Metals
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold price edges higher as ADP falls shorts of expectationsGold prices consolidate at around $2,650 for the seventh consecutive day, posts modest gains of over 0.20% after US jobs data revealed that private hiring dipped, missing economists forecasts.
Read more »
Gold price edges higher on Powell’s commentsGold price advances during Wednesday’s North American session, sponsored by mixed US economic data.
Read more »
Gold price edges higher on Powell’s commentsGold price advances during Wednesday’s North American session, sponsored by mixed US economic data.
Read more »
Gold edges higher ahead of Fed decision; upside potential seems limitedGold price (XAU/USD) builds on the overnight bounce from the $2,633 area, or over a one-week low and attracts some buyers during the Asian session on Wednesday.
Read more »
Gold edges higher after Fed speakers talk up Christmas interest-rate cutGold (XAU/USD) edges higher to trade in the $2,640s on Tuesday after commentary from Federal Reserve (Fed) speakers led to an uptick in the probabilities of the Fed cutting interest rates at its December policy meeting.
Read more »
Gold Price Forecast: XAU/USD drifts higher to near $2,650 amid persistent global uncertaintiesGold price (XAU/USD) trades with mild gains around $2,645 during the early Asian session on Monday.
Read more »