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Gold prices were supported by safe-haven demand over the holiday, according to Goldman Sachs.
On December 27th, Jin10 data reported that the price of gold futures fell, but overall remained relatively stable during the quiet holiday trading. Futures prices fell 0.4% to $2642.20 per troy ounce. The trading range of this precious metal was narrow during the holiday period. According to a report by Goldman Sachs analysts, the escalating geopolitical tensions have supported the price of gold due to safe-haven demand. The situation in the Middle East remains highly uncertain, the Russia-Ukraine conflict continues, and US-China relations remain tense. In contrast, the Federal Reserve has taken a more hawkish stance, limiting the potential upside of gold. The market expects a reduction in the number of interest rate cuts by the Federal Reserve in 2025. Higher interest rates typically weaken the attractiveness of zero-yielding gold.