Gold: still a good Christmas gift
STOXX 600 down 1.5%
Fed signals slower pace of cuts
Riksbank cuts; BoJ, Norges Bank hold
BoE to come
S&P futures edge up after Wednesday fall
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
GOLD: STILL A GOOD CHRISTMAS GIFT
Have you left your Christmas shopping until the last minute?
Maybe it's time to follow Melchior's lead and look at giving the gift of gold this year.
The yellow metal has had a stellar year, rising 27% in 2024, on track for its biggest yearly rise since 2010.
And while RBC doesn't believe this year's gains will repeat next year, their outlook calls for a "mildly higher" price in 2025.
"Looking out into 2025, we recognize the macro headwinds but view healthy central bank demand, uncertainty, and investor allocations as key," writes RBC.
Those macro headwinds include a new rate outlook, strong dollar, Trump's policies and their related and unrelated unknowns, and widespread uncertainties across geopolitics and markets.
One of the main drivers is likely to be central bank demand which has "been strong" and will "likely continue in the coming years", RBC notes.
"Prices may be high, but the desire for gold allocations has not changed (diversification, de-dollarization, etc.), and China being back to buying supports the broader narrative," they say.
For 2025, they forecast gold at $2,771/oz, implying about 6% upside from current levels.
(Samuel Indyk)
*****
THURSDAY'S OTHER LIVE MARKETS POSTS:
FED SENDS STOXX 600 TO NEAR THREE-WEEK LOW CLICK HERE
EUROPE BEFORE THE BELL: FUTURES SLIDE ON FED OUTLOOK CLICK HERE
JAPAN HOLDS, BANK OF ENGLAND UP NEXT CLICK HERE
US Dollar Index https://reut.rs/3ZMxNR8
European shares dive after Fed https://reut.rs/3Dh7vij
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
