January 30, 2025 04:13 GMT
GOLD: Gold Recovers from Move Post Fed Decision.
GOLD
- Gold is having its worst week for 2025 so far with multiple forces controlling its fortunes.
- As a ‘safe-haven’ asset, gold typically gains in times of volatility and with tariff threats, tech sell-offs and the Fed’s interest rate decision, this week has seen plenty of that.
- Monday saw one of the biggest single day drops in gold for some time as volatility in the tech sector saw gold decline, with some traders indicating that gold positions were being liquidated due equities falling.
- The risk of tariffs is having a push pull effect as President Trump’s threats extend to commodities.
- Gold’s fortunes last year were positively impacted by the expectations for rate cuts yet with the Fed now seemingly on hold, that impetus appears to be waning.
- Opening at US$2,759.36 trended lower for much of the day reaching $2,744.87 around the Fed decision, before recovering a little to finish at $2,759.36 but staged a modest recovery throughout the Asian trading day to reach $2,763.00
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