Gold Rebounds, Driven by Global Tensions and Fed Rate Hikes
Gold experienced a modest recovery on Tuesday after a sharp decline in the previous session. Spot gold prices rose 0.3% to $4,346 per ounce, after posting their biggest drop since October. This rise came after profit-taking pushed gold prices down from their record high of $4,549.71 reached last Friday.
Peter Grant, vice president of Zaner Metals, noted that market volatility was high, with Asian trading driving prices higher before profit-taking reversed. Despite this, the overall market remained favorable, with a refocus on geopolitical and economic risk factors reviving the gold rally.
Gold has surged 66% through 2025, its highest gain since 1979, driven by easing interest rates, geopolitical tensions, and significant buying by central banks and gold-backed ETFs. Meanwhile, the Federal Reserve recently cut interest rates after a lengthy debate, and the market now expects them to remain unchanged at its next meeting in January.
Geopolitical tensions, including Russia's alleged attack on President Vladimir Putin's residence, continue to support gold prices, although the market remains skeptical about the elusive Russia-Ukraine peace deal.
Source: Newsmaker.id
