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Indonesia News Portal for Traders | Financial & Business Updates

7 January 2025 15:24  |

Gold Prices Appear Non-committal Amid Fed’s Aggressive Signals

Gold (XAU/USD) prices struggled to capitalize on their intraday up-move and traded with a mild positive bias, just above the $2,640 level during the first half of the European session on Tuesday.

Against the backdrop of geopolitical risks stemming from the prolonged Russia-Ukraine war and tensions in the Middle East, concerns over US President-elect Donald Trump’s tariff plans and protectionist policies weighed on investor sentiment.

This, along with a modest US Dollar (USD) weakness, provided some support to the precious metal.

However, the Federal Reserve’s (Fed) aggressive shift capped any meaningful appreciation for Gold prices.

In fact, the Fed signaled a slowdown in the pace of interest rate cuts in 2025. This kept the US Treasury bond yields elevated, which should act as a tailwind for the USD and cap upside for the non-yielding bullion.

Traders also appeared reluctant ahead of this week’s FOMC meeting minutes and the closely-watched US Nonfarm Payrolls (NFP) report on Wednesday and Friday.

Source: FXStreet

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