Analysts: Gold prices retreated from their highs as the market continues to anticipate the Federal Reserve will ease monetary policy next year.
TL;DR
Gold prices retreated from record highs due to profit-taking and a stronger US dollar, but analysts maintain a bullish outlook based on expectations of Fed easing and ongoing political uncertainty.
Gold prices fell sharply on Odaily after hitting a record high over the weekend, with international spot gold prices briefly dropping to around $4,300 per ounce. In the context of thin liquidity ahead of the year-end holidays, gold is facing strong profit-taking, amplifying the correction after its sharp rise in recent months. Furthermore, a moderate rebound in the US dollar has also added pressure on gold. However, some analysts believe that despite the short-term pullback in gold prices, the overall macroeconomic background still supports its upward trend. The market continues to expect the Federal Reserve to ease monetary policy next year. In addition, political developments in the United States, particularly concerns about central bank independence, maintain an uncertain environment that favors safe-haven assets. (Golden Ten)