Institution: Gold remains bearish in the short term, but further downside is expected to be limited
StoneX analyst Fawad Razaqzada stated that the weakness in precious metals reflects the restrictive US monetary policy that Trump may adopt in 2025, which will increase the cost of holding non-yielding assets such as gold. Razaqzada wrote that after Trump's victory, the hawkish repricing of US interest rates supported the dollar and yields, weakening gold priced in dollars. As investors digest geopolitical risks, gold prices are also falling. Razaqzada said that the uncertainty of the US election has been eliminated, and conflicts in the Middle East and Ukraine are expected to end after Trump becomes president. He added that short-term forecasts will remain bearish before a bullish reversal occurs, but the potential for further decline may be limited.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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