The gold market experienced its fourth consecutive day of decline on Tuesday, December 17, 2024.
Investors remained cautious as they anticipated the Federal Reserves upcoming monetary policy decision.February gold futures closed at $2,662.00 per troy ounce on the Comex division of the New York Mercantile Exchange, marking a 0.30% decrease.
Market participants are keenly focused on the Federal Reserves meeting scheduled for Wednesday, December 18.The central banks updated economic projections are expected to provide crucial insights into future monetary policy.
These projections could significantly impact market sentiment and gold prices.Analysts widely anticipate a 25 basis point interest rate cut.
The CME Groups monitoring tool indicates a 95.4% probability of a rate cut.In contrast, there is only a 4.6% chance that rates will remain unchanged.
The market has already priced in this expectation, potentially limiting golds immediate reaction to the decision.Gold Prices Dip as Markets Await Federal Reserves Decision.
(Photo Internet reproduction)Despite the recent dip, UBS Wealth Management maintains a bullish outlook on gold.
The bank projects that the precious metal could reach $2,900 per troy ounce by the end of 2025.Golds Optimistic OutlookThis optimistic forecast is based on several factors.
Central banks are expected to continue accumulating gold to diversify their reserves.Additionally, golds appeal as a portfolio hedge and the anticipation of lower interest rates in the United States are likely to support its value.
The potential weakening of the US dollar could make gold more attractive to investors holding other currencies.In addition, this may lead to an increase in demand for gold.
The gold markets current behavior reflects the delicate balance between short-term caution and long-term optimism.As investors await the Federal Reserves decision, they must weigh immediate economic indicators against broader market trends.
The coming days may prove crucial in determining golds trajectory for the months ahead.