Market analysis by Tito Iakopa, Commercial Director at Flow Community
December 13, 2024 –
“Gold paused its climb following a recent multi-day rally as market participants evaluated the latest U.S. inflation data. Headline inflation rose as expected, while core inflation held steady. This dynamic has driven higher long term U.S. Treasury yields, tempering gold’s upward momentum.
Despite these factors, sentiment toward gold remains bullish. Expectations for a 25-basis-point rate cut next week, with fed funds futures indicating a 98% probability, are providing near-term support. Additionally, the European Central Bank is expected to announce a rate cut today and signal further easing measures for 2025, aligning with global monetary policy trends that could favor gold.
Focus is now shifting to the upcoming U.S. Producer Price Index, which will offer critical insights into the Federal Reserve’s policy trajectory for 2025. Meanwhile, geopolitical tensions in Ukraine and the Middle East continue to contribute to gold demand. Sustained central bank purchases and potential economic uncertainties, including the possibility of new tariffs under a potential Trump administration, are also expected to support further gains for the yellow metal.”
Analysis by Tito Iakopa, Commercial Director – Flow Community
