Gold rebounds as safe-haven flows support demand
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Gold price (XAU/USD) edges higher above $4,350 during the Asian trading hours on Tuesday. The precious metal recovers some lost ground after falling 4.5% in the previous session, which was gold’s largest single-day loss since October. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange (CME) Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing. Nonetheless, the potential downside for the yellow metal might be limited amid the prospect of Fed rate cuts in 2026. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. Furthermore, persistent global economic uncertainty and geopolitical tensions could boost traditional assets such as Gold. Trading volumes are expected to remain thin ahead of the New Year holidays. Traders brace for the release of the Federal Open Market Committee (FOMC) Minutes later on Tuesday for fresh impetus. Daily Digest Market Movers: Gold rebounds on Fed rate cuts bets in 2026 and geopolitical turmoil Russia accused Ukraine of launching a drone strike on the Russian presidential residence in northern Russia, prompting Moscow to reconsider its stance in peace negotiations, Reuters reported on Monday. Ukraine dismissed Russian statements about the drone attack, and its foreign minister said Moscow was seeking “false justifications” for further strikes against its neighbor. The CME raised margin requirements for gold, silver, and other metals in a notice posted to the exchange’s website on Friday. These notices require traders to put up more cash on their bets in order to insure against the possibility that the trader will default when they take delivery of the contract. The US Pending Home Sales rose 3.3% MoM in November after an upwardly revised 2.4% gain in October, according to the National Association of Realtors on Monday. This figure came in stronger than the estimations of 1.0%…
Filed under: News - @ December 30, 2025 3:12 am