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I confirm my intention to proceed and enter this websiteGold, often considered a safe-haven investment during times of economic and geopolitical instability, experienced its largest weekly drop in over three years last week. This was due to concerns that President-elect Trump’s proposed tariffs could lead to inflation, which might prompt the Federal Reserve to slow its pace of rate cuts. However, on Monday, gold gained 1.97%, closing at $2,612 per ounce, thus ending a six-day losing streak.
(XAUUSD Daily Price Chart, Source: Trading View)
One key factor driving this movement is President Biden’s announcement of long-range missiles to Ukraine, which would allow deeper strikes into Russian territory. This development has spurred increased demand for gold as a safe-haven asset.
Though President-elect Trump has not yet confirmed whether he will continue Biden’s policy, some of his closest allies have already voiced opposition. Notably, Vice President-elect JD Vance and other top officials have argued that the U.S. should stop providing military aid to Ukraine.
Additionally, the Federal Reserve is widely expected to implement a third rate cut in December. However, recent data suggests that progress in reducing inflation to the 2% target has stalled. This week, at least seven Federal Reserve officials are scheduled to speak, potentially offering further insight into future monetary policy.
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