Gold prices slightly declined on Monday (23rd) due to the strengthening US dollar and rising US government bond yields, while investors await clearer guidance from the US Federal Reserve (Fed) on monetary policy for 2025.

The US dollar index rose by 0.4%, nearing a two-year high, which reduced the appeal of gold for holders of other currencies. At the same time, the yield on 10-year US Treasury bonds also increased.

Michael Langford, Investment Director at Scorpion Minerals, pointed out that "The next major impact will come from President-elect Donald Trump and the executive orders he may issue. This could increase market volatility, which would benefit gold prices." Trump is set to take office on January 20th. Gold, as a safe-haven asset, often performs well in uncertain economic environments.

Gold Prices Dip as US Dollar Strengthens and Investors Await Fed's 2025 Policy Guidance

Dec 24 2024