Gold remains bid favoured safe-haven demand, China buying
The post Gold remains bid favoured safe-haven demand, China buying appeared on BitcoinEthereumNews.com.
Gold rally maintains its positive momentum intact fuelled by buying from China and safe-haven flows. The US Dollar’s moderate recovery is weighing on Gold. XAU/USD’s technical picture remains positive with price action standing above the last two week’s trading range. Gold (XAU/USD) maintains a mild bullish tone on Tuesday. The tone shift by China’s Politburo, vowing further economic stimulus to support growth, and the resumption of Gold purchases by the People’s Bank of China (PBoC) are acting as a tailwind for the precious metal. Other sources of support for Gold are the safe-haven flows triggered by the uncertainty in the Middle East, after the fall of Bashar al-Assad’s regime in Syria, and the political deadlocks in France and Germany. Finally, growing bets that the Federal Reserve (Fed) will cut rates next week keep US yields close to multi-week lows, and provide additional support to the yieldless metal. Daily digest market movers: A somewhat stronger Dollar is weighing on Gold’s recovery China’s PBoC reported buying 160,000 ounces in November after a six-month pause. This has boosted expectations of further Gold appreciation and will likely underpin speculative demand for Bullion. In Syria, the diverse rebel factions are starting negotiations to form a government while foreign powers like Israel and Turkey take positions. The increasing uncertainty in an already volatile region will underpin demand for the safe-haven Gold. The US Dollar is trading moderately higher awaiting Wednesday’s Consumer Prices Index (CPI) figures to clarify the Feds’s monetary easing calendar for 2025. The CME Group’s Fed Watch Tool reveals an 86% chance of a 25 bps Fed cut after the December 17-18 meeting and between two and three more cuts in 2025. US consumer inflation is expected to confirm that inflation remains sticky above the Fed’s 2% target rate. The headline CPI is expected…
Filed under: News - @ December 10, 2024 12:26 pm