Gold prices are currently at $2,680 per ounce, up from $2,655 at the start of last week.
Over the weekend, the collapse of Syrian President Bashar al-Assad’s regime has put the world on high alert for further instability in the Middle East. Assad has held power since 2000. This morning’s boost in gold prices reflects increased safe-haven buying as investors brace for more potential unrest in the region.
As we approach the FOMC interest rate decision on December 18, these two reports will be among the last inflationary metrics considered by Jerome Powell and the Federal Reserve before the announcement. The current prediction from the CME Group indicates an 85% chance the Fed will lower interest rates by another 25 basis points.
In other news, after a 6-month hiatus from increasing its gold reserves, the People’s Bank of China announced a purchase of 5 tonnes in November. This comes shortly after China discovered 1,000 tonnes of gold in a mine near Hunan.
With growing geopolitical tensions, inflation concerns, and global uncertainty, many investors continue to turn to precious metals like gold and silver to hedge against these risks. These assets have a long history of holding their value, even through transitions of political power both in the U.S. and abroad, providing a sense of security during turbulent times.