Gold price remains steady around $2,040 as the US dollar weakens and US Treasury bond yields drop. This could potentially push gold prices higher as the holiday approaches.
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee emphasized that the central bank is not committing to cutting interest rates in the near future. This contradicts increased market expectations for rate cuts, as stated by New York Fed President John Williams.
On the economic front, Building Permits declined while Housing Starts for November rose, reflecting strong buyer demand amidst falling mortgage rates in the US. China’s economy is also expected to see more favorable conditions, with the International Monetary Fund (IMF) revising its growth forecast for the country to 5.4% this year.
Looking ahead, the People’s Bank of China (PBoC) is expected to keep lending benchmark rates unchanged at the monthly fixing on Wednesday. Additionally, US Existing Home Sales data is set to be released, with the upcoming US Gross Domestic Product Annualized for the third quarter and the Core Personal Consumption Expenditures Price Index (PCE) later this week.
Traders are expected to closely monitor these events and seek trading opportunities around the gold price. The positive outlook for China’s economy, combined with the Fed’s stance on interest rates, may continue to influence gold prices in the short term. Additionally, macroeconomic policies supporting China’s economic recovery could also impact the world’s largest gold consumer, further influencing gold prices.
