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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-prices-slip-after-three-day-rally-but-outlook-remains-positive-amid-economic-uncertainty/
Gold prices dipped following three consecutive days of gains that saw the precious metal reach a month-high, as the market positions for a potential third weekly gain.
The recent bullish momentum was driven by favorable U.S. economic data, with traders reacting to inflation and retail sales figures.
Furthermore, comments from Federal Reserve Governor Christopher Waller introduced optimism for the precious metal, suggesting that the Fed could reduce interest rates by three to four times in 2025 if inflation continues to subside. If these cuts materialize, they could bolster gold’s appeal as a non-interest-bearing asset, though the market is currently pricing in only one rate cut this year.
The future outlook for gold remains closely tied to a series of key events, particularly the start of Donald Trump’s upcoming presidential term. With Trump’s return to the White House, the possibility of significant changes in economic policies and international trade looms large. Trade tariffs and the resulting inflationary pressures could reinforce gold’s role as a hedge against economic uncertainty and geopolitical tensions.
While central bank demand continues to provide strong support for gold prices, recent geopolitical developments, including a temporary ceasefire in the Middle East, have lessened the immediate demand for gold as a safe haven. If the situation in the region stabilizes further, the pressure on gold prices may ease, but the long-term appeal of the metal as a safeguard against global instability remains intact. The interplay between economic policies, inflation trends, and geopolitical tensions will likely continue to shape gold’s market dynamics in the coming months.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-prices-slip-after-three-day-rally-but-outlook-remains-positive-amid-economic-uncertainty/
