December 5, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas releases market commentary from George Pavel General Manager at Naga.com Middle East

Gold remains in a narrow trading range, reflecting uncertainty in the near term as investors await the Nonfarm Payrolls (NFP) report. The outcome of Friday’s NFP report could play a pivotal role in defining the Federal Reserve’s future policy stance, potentially leading to volatility in the gold market. Meanwhile, comments from Fed Chair Jerome Powell and other FOMC members have emphasized a measured approach to monetary policy, prompting traders to adopt a more cautious stance on gold.

Geopolitical tensions continue to support gold’s status as a safe-haven asset, driven by instability in South Korea, France, Eastern Europe, and the Middle East. These factors increase uncertainty in global markets, making gold more attractive as a hedge against these risks.

Meanwhile, Gold’s valuation is also supported by strong central bank demand. October data reveals record demand levels, continuing a two-year trend of increased central bank buying. This sustained buying activity could suggest a favorable environment for gold, despite its current short-term trading constraints.

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