As the year draws to a close, the anticipated rally for gold has yet to materialize. Investors are closely analyzing the Federal Reserve’s outlook for the coming year, factoring in its signals for a slower pace of rate cuts in 2025. However, this sentiment has been tempered by weaker-than-expected US PCE inflation data, increasing the likelihood of further interest rate reductions—a development that could benefit non-yielding gold.
Notably, many central banks have demonstrated their commitment to either increasing or maintaining their gold reserves this year. This trend could inspire individual investors to follow suit. For the remainder of the day, no major economic indicators are scheduled for release, creating the possibility of a tranquil gold trading session as the holiday season approaches.
On Tuesday morning, gold prices showed slight upward momentum. By 7:30 AM CET, the most actively traded gold futures contract (for February) rose by $3.90, reaching $2,632.10 per ounce.
Crude Oil: Narrow Trading Range Amid Market Uncertainty
In light trading conditions, oil prices have rebounded from the losses seen in the previous session. The recovery was supported by news that India’s crude oil imports rose by 2.6% year-over-year in November to 19.07 million tons. However, concerns about a potential oversupply in the coming year continue to weigh on prices. Reports of resumed operations at the Druzhba pipeline, following technical issues at a Russian pumping station, also eased fears of a supply shortfall in Europe. At the same time, a stronger US dollar exerted downward pressure on oil, as the commodity is priced in dollars globally.
On Tuesday morning, oil prices showed modest gains. By around 7:30 AM CET, the nearest WTI crude oil futures increased by $0.33 to $69.57 per barrel, while Brent crude futures rose by $0.34 to $72.66 per barrel.
