Gold loses some luster after Trump’s decisive win
Gold’s slide is a marked turnaround for a commodity that had surged by more than 30% in the year leading up to the US vote.
Gold ticked higher as the final week of the year got under way, with traders looking ahead to interest rate cuts from the Federal Reserve in 2024 and a weaker US currency.
Bullion is trading near a record high, heading for its first annual increase in three years, as data showing US price pressures easing reinforces expectations for multiple rate cuts in 2024.
A report last week showed the Fed’s preferred gauge of underlying inflation barely rose last month and — by one measure — even trailed policymakers’ 2% target.
Swaps markets are now pricing in a more than 80% chance of a cut by March, which would be bullish for non-interest bearing assets like gold, though some central bank officials have pushed back on the prospect of early easing.
Gold rose 0.2% to $2,057.28 an ounce as of 10:38 a.m. in New York.
(By Yvonne Yue Li and Jeff Sutherland)
Comments