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Indonesia News Portal for Traders | Financial & Business Updates

24 December 2024 11:31  |

Gold price holds steady above $2,600 mark, upside potential seems limited

Gold price (XAU/USD) attracts some dip-buyers during the Asian session on Tuesday and stalls the overnight modest pullback from a three-day top, though any meaningful appreciating move seems elusive.

The US Dollar (USD) stands firm near a two-year high touched last week amid the Federal Reserve's (Fed) hawkish outlook. Furthermore, the prospects for a slower pace of rate cuts by the Fed in 2025 remain supportive of elevated US Treasury bond yields and could act as a headwind for the non-yielding yellow metal.

Apart from this, a generally positive tone around the equity markets might contribute to capping gains for the safe-haven Gold price. Meanwhile, the fundamental backdrop seems tilted in favor of bearish traders and suggests that the path of least resistance for the XAU/USD is to the downside. That said, persistent geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, along with concerns about US President-elect Donald Trump's tariff plans, could lend support to the precious metal.

Source: Fxstreet

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