The post XAU/USD drifts higher to near $2,650 amid persistent global uncertainties appeared on BitcoinEthereumNews.com.

Gold price edges higher to $2,645 in Monday’s Asian session, up 0.52% on the day.  PBoC resumes gold purchases after a six-month pause in November.  Traders see an 87% chance of a 25bp rate cut by the Fed on December 18. Gold price (XAU/USD) trades with mild gains around $2,645 during the early Asian session on Monday. The renewed geopolitical tensions in the Middle East and Federal Reserve (Fed) rate cut expectations support the yellow metal. The US Consumer Price Index (CPI) for November will be in the spotlight on Wednesday.  The People’s Bank of China (PBOC), China’s central bank, resumed buying gold for its reserves in November after a six-month pause. This, in turn, might boost the precious metal price, as China is a major gold-consuming country. China’s gold holdings climbed to 72.96 million fine troy ounces at the end of November, up from 72.80 million troy ounces a month earlier.  Persistent global uncertainties and ongoing geopolitical tensions in Ukraine following another major attack by Russia continue to drive demand for gold as a safe-haven asset. CNN reported on Sunday that Syrian President Bashar al-Assad and his family fled to Moscow and were granted political asylum, ending 50 years of a brutal dictatorship. The downfall of Bashar al-Assad’s regime could lead to a conflict involving regional countries and Turkey, the Iranian envoy to Syria said on Sunday. Furthermore, the US November employment report on Friday suggested the labor market continues to ease gradually, leaving room for the Fed to cut interest rates in December, which lifts the Gold price as lower rates increase the appeal of holding non-yielding gold. According to the CME FedWatch tool, financial markets are now pricing in nearly 85.1% odds of a 25 basis points (bps) rate cut by the Fed on December 17-18. On the other hand,…

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Filed under: News - @ December 9, 2024 2:10 am