Gold hovers right above $2,600 level, poised for a weekly drop due to the Federal Reserve’s hawkish stance.
Midweek, the Fed signaled a cautious approach to further monetary easing, with projections suggesting only two rate cuts in 2025.
Additionally, robust US GDP data and upwardly revised consumer spending have strengthened the argument for limited easing, diminishing the allure of non-yielding assets like gold.Weakening physical demand in India, a key gold consumer, may pose further challenges, as officials anticipate a steep decline in gold imports this December.Despite these hurdles, gold has climbed ~26% this year, bolstered by US monetary easing, safe-haven demand, and central bank purchases.Although gold bulls await potential rate cuts in March, the Fed’s hesitance might keep prices restrained in the foreseeable future.More By This Author:USDInd Hits Two-Year High After Fed Rate Decision New Record Highs For Cocoa, Bitcoin And Nasdaq 100. Who’s Next? This Week: GBPUSD Below 1.2811 Ahead Of BoE Meeting
