Gold edges lower as traders take profits after hitting record high
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Gold price (XAU/USD) retreats from a record high near $4,550 during the Asian trading hours on Monday as traders book some profits ahead of holidays. A renewed US Dollar (USD) could also weigh on the precious metal, as it makes Gold more expensive for non-US buyers, pressuring prices. Despite the short-term pullback, Gold has surged nearly 70% in 2025, its best annual performance since 1979. The potential downside for the yellow metal might be limited amid expectations for the US Federal Reserve (Fed) interest rate cuts in 2026. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. Additionally, persistent geopolitical tensions could boost a traditional asset like Gold. Financial markets are likely to remain subdued ahead of the New Year holidays. The US Pending Home Sales report for November will be released later on Monday. Daily Digest Market Movers: Gold loses ground as year-end liquidity stays thin US President Donald Trump stated that he made “a lot of progress” in talks with Ukrainian President Volodymyr Zelensky over a possible peace deal. However, he said that there’s no apparent breakthrough on the flashpoint issue of territory, and it might take a few weeks to get it done. US weekly Initial Jobless Claims for the week ending December 20 declined to 214,000, compared to 224,000 in the previous reading. This reading came in better than the market expectation of 223,000. Trump said last week that he expects the next Fed Chairman to keep interest rates low and never “disagree” with him. The comments are likely to heighten concerns among investors and policymakers about Federal Reserve independence. The Fed has cut rates three times this year, and traders are pricing two rate cuts next year. Financial markets are pricing in nearly an 18.3% chance the Fed will cut interest rates at its next meeting…
Filed under: News - @ December 29, 2025 3:08 am