The post XAU/USD drifts lower to near $2,600 amid thin trading appeared on BitcoinEthereumNews.com.

Gold price edges lower to $2,600 in Tuesday’s early Asian session. The Fed’s cautious stance might drag the precious metal lower.  Uncertainty and geopolitical tensions could boost Gold price, a traditional safe-haven asset. The Gold price (XAU/USD) attracts some sellers to near $2,600 during the early Asian section on Tuesday. Traders await fresh catalysts, including the US interest rate outlook and potential tariffs under President-elect Donald Trump. The markets are likely to be quiet before year-end.  The cautious stance of the US Federal Reserve (Fed) could weigh on the yellow metal as higher interest rates tend to reduce the appeal of holding the non-yielding asset. Fed Chair Jerome Powell hinted earlier this month that the US central bank might be cautious on further rate cuts after delivering a 25 basis points (bps) rate cut. The latest Summary of Economic Projections (SEP), or “dot plot”, indicated the Fed’s intention to reduce the number of interest rate cuts next year from four to just two quarter-percent reductions. On the other hand, geopolitical tensions and Donald Trump’s potential return to the White House might intensify global trade tensions, fueling geopolitical crises and likely lifting the Gold price. “Geopolitical tensions have driven gold’s rise this year and will likely continue into 2025, especially with Trump’s return to office,” noted Kelvin Wong, OANDA’s senior market analyst for Asia Pacific. Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any…

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Filed under: News - @ December 30, 2024 11:20 pm