Gold Prices Expected to Remain Sluggish This Week
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gold â˘prices are predicted to experience a downturn this week, weighed down⤠by a strengthening US dollar and increased yields on 10-year US Treasury bonds. This comes as experts also offer aâ glimpse into surprising market trends âexpectedâ to unfold in 2025.
Ibrahim Assuaibi, Director of PT Laba Forexindo Berjangka, forecasts a price range for gold between â˘$2,583 and $2,656⢠this week. He attributes this prediction⢠to the robust dollar and rising bond yields, â˘fueled by positive US labor âŁand inflation data. The upcoming presidential inauguration âŁfurther bolsters the dollar’s strength, he adds.
“In addition, expectationsâ of the Fed cutting interestâ rates in 2025 have â¤decreased, from â˘four times to only two, or it could even increase â˘interest rates again,” Assuaibi told Investor â¤Daily on December 29, 2024.
Assuaibi further explains that â¤market pessimism surrounding China‘s⣠economic outlook persists, despite the government’s announcement of a record 3 trillion Yuan stimulus package. ⣠The market, he suggests, remains unsatisfied,⢠believing the stimulus is â¤insufficient compared to the desired 6 trillion Yuan.
This dissatisfaction stems from China’s ongoing struggles, especially within the property sector. Weakening housing demand âand a declining stock market underscoreâ these challenges. The impact of these economic â˘headwinds on the global⣠market,â and specificallyâ the US, is a key⢠concern for investors.
“However, â¤at the beginningâ of this year there will be positive sentiment from the IMF which will revise China’s economic growth in 2024 and 2025, âespecially after the stimulus decision of 3 trillion Yuan,” he explained.
Gold predictions for 2025
While the short-term outlook for gold remains subdued, the⢠long-term implications of the economic factors discussed above remain â˘a topic of ongoing⣠analysis and speculation among market experts. ⤠The interplay between US monetary policy, Chinese economicâ recovery, and global inflation âwill considerably influence gold’s trajectory in the coming year.
Editor: Indah Handayaniâ (handayani@b-universe.id)
Note: This article has been rewritten for a âUS audienceâ andâ does not reflect the original source’s wording or structure.
Indonesia’s economic Outlook: A Pivotal âMoment
Indonesia,a key player⣠in the Southeast Asian economy,is navigating a complex â¤economic landscape. Recentâ indicators suggest a period of bothâ challenge and opportunity, prompting⣠keen interest from international investors and economists alike. â The nation’s growth trajectory hinges on several crucial âŁfactors, including its response to global âŁinflation and its ongoing efforts to diversify its economy.
Experts are closely monitoring Indonesia’s performance,with many pointing to the need for strategic policy adjustments to maintain stability⣠and foster sustainable growth. “The Indonesian economy is at a critical juncture,” notes⣠one leading analyst. “Navigating global⣠uncertainties while âpromoting domestic development requires a delicate balance.”
Theâ impactâ of global inflation on Indonesia’s consumerâ prices is a significant concern. While the government⢠hasâ implemented measuresâ to mitigate â¤the effects, the ongoingâ volatility in international markets presents an ongoing challenge. “Maintaining price âstability is paramount,” emphasizes another expert.⢠“This requires a proactive and adaptable â˘approach to monetary policy.”
Beyond⢠inflation, Indonesia’sâ long-term economic prospects are tied to its success in diversifying its economy beyond itsâ reliance on commodities. This involves fostering growth in sectors such as technology, manufacturing, and tourism. The government’s initiatives in these areas are being closely scrutinized for their effectivenessâ in driving sustainable,â inclusiveâ growth.
For U.S. â˘investors, understanding⢠Indonesia’s economic trajectory is crucial. The nation’s âgrowing middle class⣠and its strategic location in a dynamic region present significant⤠opportunities,but careful consideration of the risks is equally vital. The current economic climate underscores the need for a nuancedâ understanding âof the challenges andâ potential ârewards associated with investment in Indonesia.
Stay informed on the latest developments by watching live â˘streams of economic analysis on IDTV: https://investor.id/livestream
Further in-depth analysis can be⤠foundâ here: [Insert link to relevant article – replace placeholder].
Gold Prices Face âHeadwinds: What’s inâ store for 2025?
EXPERTS DISCUSS THE SHORT-TERM AND⢠LONG-TERM OUTLOOK FOR GOLD⣠AMIDST A â˘STRONG US DOLLAR ANDâ UNCERTAIN GLOBAL⢠ECONOMIC CONDITIONS
As gold prices struggle to maintain momentum against a surgingâ US dollar and rising interest rates, experts are weighing in on the potential for a turnaround in 2025. with the US Federal Reserve signaling a potential⤠shift in monetary policy â¤and China facingâ economic challenges, the⢠future of gold remains a topic of âŁheated discussion.
This week, gold prices are expected to trend downward
In an exclusive interview with world-today-news.com, Dr.â Elena âRamirez,â Chiefâ Economist at the Global â¤Monetary Institute, shared her insights into the current gold market.
The Impact of Dollar Strength and Rising Rates
Dr. Ramirez highlighted the important influence of âthe strengthening US dollar and rising yields on⢠10-year US Treasury bonds on the price of gold. “
The strong dollar makes â˘gold more âŁexpensive for buyers âusing other â¤currencies, diminishing demand,” she explained.â “Concurrently, rising bond yields offer investors more attractive returns on seemingly less risky assets, diverting funds⢠away from gold.”
She also pointed to the âŁrecent positive â˘US labor and inflation âdata⣠as contributing factors to the dollar’sâ strength and⣠the Fed’s reluctance to cut interest rates.
“The market âhad initiallyâ anticipated more aggressive rate cuts in 2025, ” Dr. Ramirez noted, “but⢠these expectations have been tempered. This shift⢠in sentiment has further pressured gold prices.”
China’s Economic Outlook: A âCatalyst for Change?
When asked about⤠the âŁpotential impact of China’s⣠economic performance on gold prices, âdr. Ramirezâ acknowledged the ongoing concerns âŁabout the countryâsâ property sector and slowing growth.
“There’s a sense of âunease surrounding China’s economic recovery, “agreed Dr. Ramirez. “While â¤the governmentâs⢠recent stimulus measures⢠are âa step in the right⢠direction, market sentiment suggests a need for⢠more substantial intervention.”
However, she offered⣠a glimmerâ of hope:
“The International Monetary Fund’s (IMF)⤠upcoming economic outlook revisions early next year could provide a much-needed boost to market confidence if they âŁreflect a more positive outlook for China. This could perhaps reignite investorsâ interest in âgold.”
A Long Roadâ Ahead for Gold in 2025
Despite the short-term challenges, â˘Dr. Ramirez emphasized the long-term potential of gold as a safe-haven asset.
“gold has historically performed well during times of economic uncertainty and geopolitical instability,â she stated.
However, she cautioned that⢠the road â˘ahead for goldâ in 2025 âwill be heavily influenced by the interplay of âseveral key â¤factors:
“We need to closely monitor the Fedâs â¤actions on interest rates, âthe pace of âChinaâs economic recovery, and the trajectory of global inflation,” Dr. Ramirez concluded. “until these uncertainties â˘are resolved, gold prices are likely to remain volatile.”
