Gold Prices Today (December 31): Broad Decline Across the Board
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Spot gold has successfully climbed past the $2,600 mark during the U.S. trading session, continuing its retreat from Friday's peak of $2,638.
Driving the current sentiment is the U.S. dollar (USD), which gained strength as Wall Street opened amidst lackluster performance in local indices. Weak trading volumes further intensified the drop in equities, fueling a short-term rally in the USD. Yet, despite these temporary setbacks, the three major indices are on track to close another year with impressive gains.
Meanwhile, market participants are shedding high-yield assets as uncertainty looms over what 2025 may bring. The Federal Reserve (Fed) has signaled its intent to slow the pace of rate cuts, given that inflation remains stubbornly high. Adding to the tension, former President Donald Trump is set to return to the White House on January 20, with his anticipated protectionist policies likely to exacerbate inflationary pressures in the years ahead.
Given these dynamics, a bearish outlook on gold remains dominant in the short and medium term. Attention is centered around the 2,610 resistance level—so long as sellers defend this zone, gold appears poised to decline further, with potential targets in the 2,596–2,587 range.
What are your thoughts? Share your insights, forecasts, and questions—let’s explore the ongoing dynamics of XAUUSD together!
Spot gold has successfully climbed past the $2,600 mark during the U.S. trading session, continuing its retreat from Friday's peak of $2,638.
Driving the current sentiment is the U.S. dollar (USD), which gained strength as Wall Street opened amidst lackluster performance in local indices. Weak trading volumes further intensified the drop in equities, fueling a short-term rally in the USD. Yet, despite these temporary setbacks, the three major indices are on track to close another year with impressive gains.
Meanwhile, market participants are shedding high-yield assets as uncertainty looms over what 2025 may bring. The Federal Reserve (Fed) has signaled its intent to slow the pace of rate cuts, given that inflation remains stubbornly high. Adding to the tension, former President Donald Trump is set to return to the White House on January 20, with his anticipated protectionist policies likely to exacerbate inflationary pressures in the years ahead.
Given these dynamics, a bearish outlook on gold remains dominant in the short and medium term. Attention is centered around the 2,610 resistance level—so long as sellers defend this zone, gold appears poised to decline further, with potential targets in the 2,596–2,587 range.
What are your thoughts? Share your insights, forecasts, and questions—let’s explore the ongoing dynamics of XAUUSD together!
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