FX.co ★ Gold Nears Another Record High

Gold prices surged to approximately $4,370 per ounce on Thursday, bouncing back from earlier declines and edging closer to record highs. This upward momentum was spurred by new data bolstering expectations that the Federal Reserve might implement further interest rate cuts. Notably, U.S. inflation eased to 2.7% in November, coming in below projections, while core inflation dropped to 2.6%, marking its lowest level since March 2021. As a result, markets are currently estimating about a 25% likelihood of a rate cut in January, with near certainty of such action by April. Additionally, geopolitical tensions heightened investor demand for gold. This includes the U.S. suspending sanctioned Venezuelan oil shipments following the recent tanker seizure and military deployment, coupled with Russian President Vladimir Putin's reaffirmation of firm territorial claims in Ukraine, despite increased diplomatic efforts by the U.S. This year, bullion has surged by roughly two-thirds, achieving its strongest annual growth since 1979.