Gold Prices Support Positive Performance This Year!
Gold prices held steady at $4,332 per ounce during the Asian session, despite the market facing the end of the year. The rise in the price of this precious metal is still driven by positive sentiment regarding global monetary policy, including interest rate cuts by the US Federal Reserve and large purchases by central banks worldwide. Gold remains a highly sought-after safe-haven asset amid geopolitical tensions and global economic concerns.
The Fed's interest rate cuts throughout the year have provided a strong boost to gold prices, which have not resulted in unbalanced returns. Lower borrowing costs benefit commodities like gold, as they make it easier for investors to shift to safer assets in the market. Despite a short-term price correction, gold remains on track for its best annual performance since 1979.
Furthermore, concerns about inflation and political instability continue to support gold demand. Rising tensions in the Middle East, the Russia-Ukraine war, and economic turmoil in various developing countries have prompted investors to turn to gold to hedge their assets. This increase reflects strong global demand for precious metals, particularly in Asia and Europe.
On the other hand, the stability of the US dollar index around its lowest level has a positive impact on gold, which often moves inversely to the dollar. With a weaker dollar, gold becomes more affordable for international investors, strengthening its global appeal. Furthermore, strong interest from retail investors and increased demand for ETFs have also contributed to the price increase.
However, market volatility is expected to be somewhat hampered towards the end of the year, with many investors likely awaiting the release of the Fed minutes in the coming days. Traders expect these minutes to provide a clearer picture of the possibility of further interest rate cuts or tighter monetary policy next year.
Overall, despite a slight short-term decline due to profit-taking, gold is still expected to maintain its high position for 2025. Strong fundamentals and a robust global economy will continue to support demand for gold as a safe investment during volatile market conditions. (asd)
Source: Newsmaker.id
