Gold prices dipped slightly after hitting a five-week high, but still bullish due to expected Fed rate cuts.

From Investing.com: 2024-12-16 03:10:00

Gold prices retreated slightly by 1.2% on Friday after hitting a five-week high, but bullish sentiment prevails due to anticipated rate cuts by the Fed. Gold has surged this year due to a looser monetary policy and safe-haven demand, with a 97% chance of a 25-bps rate cut at the Fed’s meeting in December. XAU/USD remains stable, with key levels to watch at $2,649 and $2,668.

The euro gained 0.33% against the USD on Friday, with EUR/USD stuck in a tight range due to weak eurozone fundamentals. Expectations of Fed rate cuts and ECB monetary policy divergence keep market sentiment cautious, with investors hesitant to adopt a bullish outlook on the EUR/USD.

The British pound weakened after U.K. GDP data fell below forecast, with the BOE adopting a more dovish stance amidst slowing economic growth. Market expectations of rate cuts in 2025 continue to pressure the pound, with GBP/USD trying to regain losses but awaiting the U.K. PMI flash data report for further direction.



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