Fed Rate Cut Expectations Boost Gold's Strength
Gold prices strengthened again on Tuesday (December 9), as market expectations of the Federal Reserve (The Fed) possibly cutting interest rates soon grew. The weakening US dollar due to expectations of monetary easing made gold cheaper for holders of other currencies, thus increasing global demand for the precious metal. This sentiment was reinforced by weak US economic data, increasing investor confidence that the Fed would adopt a dovish stance.
Demand for gold as a safe-haven asset was not only driven by monetary factors, but also increased amidst growing global economic and geopolitical uncertainty. Buying by central banks and institutional investors also provides additional support for prices, making gold a popular choice when stock and currency markets begin to fluctuate. (alg)
The gold price at the time of this analysis was released was at $4,201
- Buy if the price is at $4,208
- Sell if the price is at $4,194
Resistance 2: $4.22
Resistance 1: $4,215
Support 1: $4,187
Support 2: $4,180
Disclaimer
This article is analytical in nature and does not constitute a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
