XAU/USD holds steady below $2,650 ahead of US PMI data
The post XAU/USD holds steady below $2,650 ahead of US PMI data appeared on BitcoinEthereumNews.com.
Gold price trades on a flat note near $2,650 in Monday’s early Asian session. Huge demand from central banks and safe-haven flows could support Gold price, but Trump’s tariff plan might cap its upside. Investors brace for the preliminary US December PMI data, which is due on Monday. The Gold price (XAU/USD) trades flat around $2,650 during the early Asian session on Monday. However, strong central bank buying and ongoing geopolitical tensions in the Middle East could underpin the precious metal in the near term. Investors await the preliminary US December Purchasing Managers Index (PMI) for fresh impetus, which is due later on Monday. Significant demand from central banks lifts the yellow metal price. Central banks have been net buyers of gold for nearly 15 years, emphasizing its value as a crisis hedge and a reliable reserve asset. According to the World Gold Council, the precious metal is expected to rise modestly in 2025 due to central bank actions, geopolitical tensions, and economic conditions in key markets like the US, China, and India. On Sunday, Israel’s government approved a plan to double its population in the occupied Golan Heights, citing threats from Syria, per Reuters. Any signs of escalating geopolitical tensions in this region could boost a flight to safe assets, benefiting the Gold price. On the flip side, US President-elect Donald Trump’s tariff plan would stoke further inflation and delay the Federal Reserve (Fed) easing policy. Additionally, the robust US economy could lift the US Dollar (USD) and undermine the USD-denominated commodity price as it increases the opportunity cost of holding non-yielding bullion. “Generally speaking, we see a stronger U.S. economy next year, which should leave less room for rate cuts and should thus bring less tailwinds for gold,” said Carsten Menke, an analyst at Julius Baer. Gold traders will closely watch…
Filed under: News - @ December 16, 2024 1:19 am