{"id":109742,"date":"2024-12-20T13:51:22","date_gmt":"2024-12-20T09:51:22","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=109742"},"modified":"2024-12-20T13:51:25","modified_gmt":"2024-12-20T09:51:25","slug":"gold-prices-struggle-amid-hawkish-fed-outlook-and-strong-dollar","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/gold-prices-struggle-amid-hawkish-fed-outlook-and-strong-dollar\/12\/20\/market-updates\/","title":{"rendered":"Gold Prices Struggle Amid Hawkish Fed Outlook and Strong Dollar"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Gold prices held near a one-month low in Asian trade on Friday, heading for their third consecutive weekly loss as the Federal Reserve\u2019s slower-than-expected rate cut projections for 2025 weighed on investor sentiment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Gold Performance<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Spot gold<\/strong> edged up <strong>0.1%<\/strong> to <strong>$2,596.82 per ounce<\/strong>, while<\/li>\n\n\n\n<li><strong>Gold futures<\/strong> for February delivery rose <strong>0.1%<\/strong> to <strong>$2,610.30 an ounce<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>For the week, spot prices were down nearly <strong>2%<\/strong>, pressured by a strengthening dollar, which hit a one-year high earlier this week.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Factors Weighing on Gold<\/strong><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Federal Reserve Policy<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The Fed lowered rates by 25 basis points but projected only two more cuts in 2025, compared to market expectations of four.<\/li>\n\n\n\n<li>A slower rate cut path boosts the dollar and bond yields, reducing gold&#8217;s appeal as a non-yielding asset.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>U.S. Economic Resilience<\/strong>:\n<ul class=\"wp-block-list\">\n<li><strong>GDP Growth<\/strong>: Revised Q3 data showed the U.S. economy grew faster than previously estimated, signaling strong economic momentum.<\/li>\n\n\n\n<li><strong>Jobless Claims<\/strong>: Initial claims fell more than expected last week, hinting at a gradual labor market slowdown, not a steep decline.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Safe-Haven Demand<\/strong>:\n<ul class=\"wp-block-list\">\n<li>With the U.S. economy displaying resilience, demand for safe-haven assets like gold has waned.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<p>Investors now await the <strong>Personal Consumption Expenditures (PCE) price index<\/strong>, the Fed\u2019s preferred inflation gauge, for further clues on economic conditions and monetary policy direction.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Other Precious Metals<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Platinum futures<\/strong> fell <strong>0.4%<\/strong> to <strong>$921.75 an ounce<\/strong>.<\/li>\n\n\n\n<li><strong>Silver futures<\/strong> dropped <strong>0.4%<\/strong> to <strong>$29.302 an ounce<\/strong>.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Industrial Metals: Copper Gains on U.S. Data, China Stimulus Hopes<\/strong><\/h3>\n\n\n\n<p>Copper prices rebounded after Thursday\u2019s slump, supported by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strong U.S. Data<\/strong>: Expectations of steady demand due to robust economic conditions.<\/li>\n\n\n\n<li><strong>China Stimulus Hopes<\/strong>: Reports suggest Beijing plans to increase fiscal spending in 2024, boosting demand for industrial metals.<\/li>\n\n\n\n<li><strong>London Metal Exchange Benchmark Copper<\/strong> rose <strong>0.4%<\/strong> to <strong>$8,925.30 per ton<\/strong>.<\/li>\n\n\n\n<li><strong>One-month Copper Futures<\/strong> were steady at <strong>$4.0855 per pound<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>China&#8217;s central bank left its loan prime rate unchanged, but speculation about fiscal stimulus helped buoy copper sentiment despite limited impact from looser monetary policy over the past two years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outlook<\/strong><\/h3>\n\n\n\n<p>Gold faces continued headwinds from the Fed\u2019s hawkish stance, the strong dollar, and resilient U.S. economic data. Meanwhile, industrial metals, particularly copper, may see more support if China&#8217;s fiscal stimulus plans materialize, providing some optimism in the broader commodity market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices held near a one-month low in Asian trade on Friday, heading for their third consecutive weekly loss as the Federal Reserve\u2019s slower-than-expected rate cut projections for 2025 weighed on investor sentiment. Gold Performance Spot gold edged up 0.1% to $2,596.82 per ounce, while Gold futures for February delivery rose 0.1% to $2,610.30 an &hellip;<\/p>\n","protected":false},"author":9,"featured_media":101014,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,36],"tags":[6885,9591,7603,7580],"class_list":["post-109742","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-market-updates","tag-fed","tag-fomc-decision","tag-gold-prices","tag-monetary-policy"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=109742"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109742\/revisions"}],"predecessor-version":[{"id":109744,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109742\/revisions\/109744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/101014"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=109742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=109742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=109742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}