Gold price to increase big time in December? Here's what we know so far
Gold prices in December may rise if the US Dollar goes into tepid mode. Meanwhile, gold rates remained steadied on Thursday, as per a report on Reuters.
Spot gold held its ground at $2,649.69 per ounce, as of 1221 (GMT). The US gold futures also eased 0.1 per cent to $2,673.30. Investors held back from placing big bets ahead of the US non-farm payrolls data that could influence the Federal Reserve's interest rate trajectory as markets awaited this year's final policy-setting meeting.
Traders are pricing in a 74 per cent chance of a 25-basis-point cut at the Fed's December 17-18 meeting, according to the CME Group's FedWatch Tool. Bullion, which does not pay any interest, historically performs well in a low-interest rate environment.
«Gold prices could see a short-term rise toward $2,700 per ounce, driven by seasonal weakness in the U.S. dollar, which historically underperforms in December. However, a deeper correction in gold prices remains possible over the medium term,» said Zain Vawda, market analyst at MarketPulse by OANDA, as per the Reuters report.
The market's focus is on initial jobless claims due later in the day and the U.S. non-farm payrolls (NFP) report on Friday, with the payrolls likely increasing by 200,000 jobs in the month after rising by only 12,000 in October.
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