December 17, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas releases market commentary from Ruben Ferreira – Head of Portuguese Operations at FlowCommunity

Gold prices retreated today amid a stronger U.S. dollar and rising U.S. Treasury yields, as market participants focus on the Federal Reserve’s critical two-day meeting and its 2025 outlook. While a quarter-point interest rate cut is widely expected on Wednesday, the future path of monetary policy remains uncertain, particularly given concerns about potential inflationary pressures. The broader market landscape is further complicated by upcoming policy decisions from other major central banks, including the Bank of Japan and Bank of England. Meanwhile, the European Central Bank has indicated potential rate cuts next year, contingent on inflation reaching its 2% target. These decisions could influence gold’s trajectory in the coming months.

Market sentiment remains especially sensitive to this week’s upcoming U.S. GDP and inflation data releases. At the same time, gold continues to draw substantial support from ongoing geopolitical tensions, particularly the prolonged Russia-Ukraine conflict and unrest in the Middle East. These geopolitical factors reinforce gold’s traditional role as a safe-haven asset, with further support potentially arising from trade policy shifts that could support demand for the precious metal.

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