Gold prices bounced back slightly as US economic data suggests slower Fed rate cuts in 2025.

From Investing.com: 2024-12-20 02:31:00

Gold prices bounced back by 0.24% after a volatile trading session, following US economic data hinting at a more gradual approach to monetary policy easing by the Fed in 2025. Investors remain cautious about further Fed rate cuts, with a 44% chance of a 25 bps cut by mid-2025. The recent sell-off in gold has been viewed as a buying opportunity by some. XAU/USD may see sharp movements based on the US PCE report today.

The euro gained slightly against the dollar but remains pressured as expectations for Fed and ECB rate cuts diverge. Market anticipates only one Fed rate cut in the next six months, while ECB may deliver four cuts by mid-2025. EUR/USD may see volatility based on US inflation figures today.

Bitcoin dropped by 8.35% after the Fed’s less dovish stance on rate cuts, causing investors to move away from riskier assets. Fed officials stated they have no intention of influencing Bitcoin’s legal status. BTC/USD may see further movement based on the US PCE Price Index report later today.



Read more at Investing.com: Gold Shows Modest Recovery Amid Mixed Economic Signals