“Riding the holiday roller coaster, prices lost as much as 2.5% from Wednesday’s high. They regained some lost ground in early Thursday trading following a call from president-elect [Donald] Trump to block a funding deal that threatens a shutdown of the US government,” he adds.
The short-to-medium-term US economic outlook might bring more headwinds than tailwinds for gold, extending the current consolidation, says Julius Baer next generation research head Carsten Menke.
On Wednesday, the US Federal Reserve (Fed) lowered the benchmark interest rate for a third consecutive time, signalling caution for the months ahead amid prevailing concerns about inflation — implies fewer rate reductions next year. This pushes up the US dollar and US bond yield while weighing on gold, says Menke.
