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Indonesia News Portal for Traders | Financial & Business Updates

5 December 2024 10:33  |

Gold Held Above $2,640 Per Ounce On Thursday

Gold held above $2,640 per ounce on Thursday, remaining within a tight trading range as investors continued to assess the Federal Reserve's monetary policy outlook ahead of a key jobs report. On Wednesday, Fed Chair Jerome Powell stated that he expects officials to proceed cautiously as they continue to lower rates, while reaffirming the resilience of the US economy.

However, this view was challenged by recent data that revealed that the services sector slowed more than expected in November.

The data also raised the likelihood of a 25 bps rate cut in December, which benefits gold by reducing the opportunity cost of holding non-interest-bearing assets. Meanwhile, the metal continued to gain support from its safe-haven status amid global geopolitical unrest, including political turmoil in South Korea and France, the Russo-Ukrainian war, and Israel's threat of war with Lebanon if its truce with Hezbollah collapses.(Cay)

Source: Trading Economi

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