Gold prices are declining due to rising US Treasury yields, profit-taking, and expectations of a less dovish Federal Reserve outlook for 2025. The upcoming Fed meeting and its economic projections, particularly regarding rate cuts, will significantly influence gold prices. India's gold imports are anticipated to decrease in December due to fewer festivals and higher gold prices.
Gold prices have dropped due to increased US Treasury yields, profit-taking, and the anticipation of a less dovish Fed outlook for 2025.
The decision at this week’s meeting may not hold much sway in the minds of market participants and rightly so in my opinion. I do think that a lot of this has already been priced into the Gold price leaving the updated economic projections and commentary from Fed Chair Powell. This is where I believe all eyes will be focused on in tomorrow’s meeting.cuts from the Fed as previously hoped. This stems from a variety of factors, the most pertinent being the return of US President Donald Trump.
India remains the world’s second largest consumer of the precious metal and this could also be a contributing factor to the recent price decline. Gold imports more than doubled in November compared to the previous month, reaching a record $14.8 billion.Looking ahead, analysts seem upbeat about the prospects for Gold in 2025. Many have placed a target around the $3000/oz mark. Chinese authorities are looking at increasing stimulus as demand remains weak in the world’s second largest economy.
As things stand a four-hour candle close above the 2660 handle is needed for a change in structure to take place which could embolden bulls. This could lead to a sustained recovery but given the recent selling pressure buyers may remain on edge and not ready to commit.
GOLD FEDERAL RESERVE US TREASURY YIELDS RATE CUTS INDIA
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