fromLondon Business News | Londonlovesbusiness.com
10 hours agoMedium- and long-term outlook for gold as a new monetary easing cycle approaches - London Business News | Londonlovesbusiness.com
In the medium term, the factor that has the greatest influence on gold's trajectory remains the U.S. interest rate cycle. As recent data shows signs of cooling in U.S. growth and consumption, the market increasingly believes that the Federal Reserve (Fed) will have to begin cutting interest rates in the near future. The decline in bond yields at the end of November to around 4.02% before rebounding to the current level near 4.088% created favourable conditions for gold to strengthen, as the opportunity cost of holding gold decreases.