At 12:09 GMT, XAU/USD is trading $2618.40, down $3.64 or -0.14%.
Fed policy and economic data in pictures
Markets are bracing for upcoming US economic indicators, including the minutes of the December Fed meeting and employment data, as investors assess the likelihood of further rate cuts. Recent comments from Fed Chair Jerome Powell indicate a cautious stance on further easing, reinforcing the importance of future labor market data in shaping policy expectations.
Gold’s performance has been robust in 2024, up about 27% and reaching an all-time high of $2790.17 at the end of October. Central bank buying and continued interest rate cuts in the US have been key drivers of this rally. Traders are now keeping an eye on potential policy changes as President-elect Donald Trump prepares to take office, with tariffs, deregulation and tax adjustments expected to impact markets in 2025.
Returns decline as the year comes to an end
U.S. Treasury yields fell slightly on Monday, reflecting subdued trading as investors unwind their positions before the end of the year. Economic reports, including current home sales and manufacturing indices, can provide definitive insights into the health of the economy before 2024 ends. Last week’s jobless claims underscored a mixed labor market, with continued claims reaching their highest level since late 2021.