World gold price on December 17: Slight increase due to the impact of geopolitical instability and the weakening of the USD

DNVN - Spot gold prices edged up on December 16, buoyed by geopolitical concerns and a weaker US dollar, as markets closely watched the US Federal Reserve’s policy meeting, which is expected to deliver a third interest rate cut and release its economic outlook for 2025.

As of 1:41 a.m. on December 17, Vietnam time, spot gold prices increased by 0.2% to $2,654.27/ounce. In contrast, gold futures prices in the US decreased by 0.2% to close at $2,670/ounce.

Ongoing geopolitical risks continue to underpin gold, said Nitesh Shah, a strategist at WisdomTree. He also pointed out that China has resumed gold purchases and predicted that the country will likely increase economic stimulus to boost recovery, thereby providing further support for gold prices.

Israel's recent decision to expand settlements in the Golan Heights has been strongly opposed by many countries in the region, especially Arab countries. This has increased concerns about the possibility of escalating tensions in the region.

Gold is often seen as a safe haven asset in times of economic and geopolitical uncertainty. A low interest rate environment also makes gold a more attractive option since it does not generate direct income.

The Fed is expected to cut interest rates by another quarter of a percentage point at its two-day policy meeting on December 17-18. It will also provide an update on its economic outlook through 2025.

The dollar index fell 0.1%, off a near three-week high hit on Dec. 13. That makes gold, priced in dollars, more attractive to investors holding other currencies.

Demand for gold and silver will remain strong until U.S. interest rates stabilize, Citi forecasts, with both precious metals expected to peak in late 2025 or early 2026.

This week, important data such as the US third quarter GDP (third revision) and inflation index will be released. These information may continue to impact market sentiment.

Meanwhile, in the market for other precious metals, the spot price of silver remained at $30.57 an ounce. Platinum rose 1.1% to $934.70 an ounce, while palladium fell 0.8% to $944.37 an ounce.

Early in the morning of December 17, in the domestic market, Saigon Jewelry Company (SJC) listed the price of gold bars at 82.6 - 85.1 million VND/tael (buy - sell).

Cao Thong (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-the-gioi-ngay-17-12-tang-nhe-do-anh-huong-tu-bat-on-dia-chinh-tri-va-su-suy-yeu-cua-dong-usd/20241217091339358