Gold Prices Slip Amid Low Trading Volumes
As the holiday season approaches, gold futures have taken a slight hit, falling 0.1% to $2,626.10 a troy ounce. This downward trend can be attributed to the prevailing pessimism surrounding the pace of U.S. interest-rate cuts in 2025.
Interest Rate Concerns Weigh on Gold
According to XS.com’s Samer Hasn, the uncertainty surrounding interest rate cuts has prevented gold from benefiting from weak economic data. Higher interest rates for a longer period tend to suppress investor demand for non-interest bearing gold, making it a less attractive option.
Holiday Trading Volumes Impact Market Activity
The futures market has been characterized by weak activity ahead of the holiday season, with institutional investors taking a cautious approach. This lack of market participation has led to a reversal in gold’s earlier gains, ultimately resulting in a slight decline.
Gold Struggles to Gain Traction
Despite attempts to gain ground earlier in the session, gold has been unable to sustain momentum. The combination of low trading volumes and interest rate concerns has created a challenging environment for the precious metal. As the market continues to navigate these factors, gold’s performance remains uncertain.
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