Dec 9 2024, 10:28
Gold rose above $2,640 an ounce on Monday, boosted by its appeal as a safe haven amid renewed geopolitical tensions in the Middle East, as well as growing expectations of a U.S. interest rate cut.
Rebel forces in Syria toppled President Bashar al-Assad on Sunday, ending the Assad family’s 50-year rule and raising concerns about a new wave of instability in the region.
Friday’s U.S. jobs report also indicated that the labor market continued to ease gradually, allowing the Federal Reserve to cut interest rates later this month.
The market is now pricing in an 83% chance of a 25bps cut at the Fed’s final meeting of the year, according to the CME FedWatch tool.
This would reduce the opportunity cost of holding the non-interest-bearing asset, making it more attractive to buyers. Elsewhere, China’s central bank resumed gold purchases for its reserves in November after a six-month hiatus, providing additional support for the yellow metal.
Source: Trading Economics
