Gold rises in holiday-truncated week; Fed’s 2025 outlook weighs
Live MintBy Rahul Paswan - Gold prices edged higher on Tuesday, as investors braced for a less aggressive path of interest rate cuts from the Federal Reserve next year, in a holiday-truncated trading week. While a benign U.S. inflation reading on Friday eased some concerns about the pace of cuts next year, markets are still pricing in just about 35 basis points worth of easing for 2025. The next thing the market will look for is Donald Trump's policy on trade tariffs and how the targeted trade partners react to it, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific. "I believe trade tariffs are one of the negotiation tactics and if the trading partners do not want to buy the stick or the carrot, they may retaliate with other forms of sanction against U.S. products, which could cause volatility in the market, potentially seeing gold's safe-haven demand rise."