PT Rifan Financindo Berjangka – Gold Eases as US Dollar, Yields Eise in Thin Holiday Trading
Gold prices edged lower in subdued holiday-season trading on Monday, weighed down by a robust dollar and high U.S. Treasury yields as investors awaited clearer signals on the Federal Reserve’s monetary policy for 2025.
Spot gold was down 0.4% at $2,611.17 per ounce, as of 1:42 p.m. ET (1842 GMT). U.S. gold futures settled 0.6% lower at $2,628.20.
The dollar index (.DXY), was up 0.4% against its rivals, hovering around a two-year high, reducing gold’s appeal for holders of other currencies, while the benchmark U.S. 10-year yield also gained.
Despite the Fed’s 25-basis-point rate cut last week, its signal of fewer rate reductions in 2025 sent gold to its lowest levels since mid-November last week.
While non-yielding gold benefits in low-interest-rate environments, investors are recalibrating expectations for next year.
Gold has set multiple record highs this year, rising 27% so far to mark its best annual performance since 2010, driven by robust central bank buying, geopolitical tensions and monetary policy easing by major banks.
President-elect Donald Trump takes office on Jan. 20.
Gold, often considered a safe-haven asset, typically performs well during economic uncertainties.
Spot silver rose 0.5% at $29.67 per ounce and platinum climbed 1.2% to $937.65, while palladium gained 1.1% to $931.10.
Source : Reuters
Gold Edges Lower in Thin Trade as Dollar Firms
Gold prices eased on Monday on a firmer dollar, in thin, holiday-season trade and as investors sought further clues on the U.S. Federal Reserve’s monetary policy for next year after its latest meeting signaled easing would be gradual.
Spot gold was down 0.2% at $2,616.06 per ounce, as of 1158 GMT. U.S. gold futures eased 0.6% to $2,630.00.
The dollar index (.DXY), opens new tab was up 0.5% against its rivals and hovered around a two-year high. A stronger dollar reduces gold’s appeal for holders of other currencies.
“(It’s a) quiet day with lower liquidity and limited data releases during the holiday season,” UBS analyst Giovanni Staunovo said.
“We retain a constructive outlook for gold in 2025, targeting a move to $2,800/oz by mid-2025.”
The Fed cut rates by 25 basis points on Dec. 18, although the central bank’s predictions of fewer rate cuts in 2025 resulted in a decline in gold prices to their lowest level since Nov. 18 last week.
Non-yielding gold tends to thrive in a low interest rates environment.
U.S. consumer spending increased in November, supporting the Fed’s hawkish stance, a sentiment that was also shared by San Francisco Fed President Mary Daly.
“Presently, we are in a lull for Christmas week with the gold price trending sideways. Federal Reserve policy is clear with expectations of rising interest rates in the second half of the year,” said Michael Langford, chief investment officer at Scorpion Minerals. PT Rifan Financindo Berjangka.
Source : Reuters