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Gold Prices Attempt to Recover amid Fed's Aggressive Tendency
Thursday, 19 December 2024 12:50 WIB | GOLD |GOLDEMAS

Gold (XAU/USD) prices staged a goodish intraday recovery from a one-month low, around $2,584-$2,610 region touched during the Asian session on Thursday (19/12), albeit without any follow-through buying. The Federal Reserve (Fed) signaled on Wednesday that it would slow the pace of interest rate cuts. This comes on top of persistent geopolitical risks and trade war fears, which in turn, dampened investors' appetite for riskier assets and drove some haven flows towards the precious metal.

Meanwhile, the Fed's more hawkish view on the 2025 outlook remained supportive of a further uptick in the US Treasury bond yields to multi-month highs. This helped the US Dollar (USD) to preserve its strong overnight gains to a two-year high and kept a lid on any meaningful appreciating move for the non-yielding Gold prices. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the recent XAU/USD pullback from over one-month highs is over.

Source: FXStreet

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