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Gold Prices Hold Modest Gains Amid Fed's Stance
Tuesday, 24 December 2024 13:34 WIB | GOLD |GOLDEMAS

Gold prices extended its steady uptrend in the Asian session and climbed to fresh intraday tops, around the $2,620 region in the last hour. Against the backdrop of persistent geopolitical risks and fears of a trade war, a modest pullback in the US Treasury bond yields provided some support to the commodity. However, any meaningful appreciating move for XAU/USD seems elusive in the wake of the Federal Reserve's (Fed) shift in its aggressive stance.

In fact, the Fed last week hinted at slowing the pace of interest rate cuts in 2025. This helped the US Dollar (USD) to hold firm near two-year highs and should act as a tailwind for the US Treasury yields, which should cap gains for the non-yielding yellow metal. This, in turn, warrants some caution before positioning for the resumption of a modest recovery move from one-month lows touched last week amid relatively thin trading volumes.

Source: FXStreet

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