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30 December 2024,03:18

Trade Of The Day

Gold prices up as global uncertainties ahead in 2025

30 December 2024, 03:18

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Fundamental Analysis

* Gold might rise due to uncertainty ahead: Gold prices (XAU/USD) remain buoyant near $2,625 as global geopolitical and economic uncertainties heighten safe-haven demand. Rising concerns over Donald Trump’s trade policies, escalating Middle East tensions, and the ongoing Russia-Ukraine conflict are likely to sustain upward pressure on gold. However, the Federal Reserve’s cautious stance on rate cuts in 2025 may limit significant price surges. This trading volumes due to the upcoming New Year holiday may also contribute to subdued price volatility.

Technical Analysis

*Consolidation range: Gold prices continue to trade within a consolidation zone, highlighting a bullish engulfing candlestick pattern on the 1-hour chart. This technical signal suggests a possible continuation of slight gains, with a resistance level at $2,635 being a key level to monitor.

* Resistance and Support: If bullish momentum persists, gold prices could climb further, targeting the resistance level of $2,635. Conversely, any signs of a reversal, such as a bearish candlestick pattern or a shift in momentum, may drive the commodity toward a retracement to the support level of $2,610.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

The Federal Reserve’s limited rate-cut expectations for 2025 could temper upward movement. Additionally, thin trading volumes ahead of the New Year holiday may keep price fluctuations constrained.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Eurozone data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

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