Pound, Gold, and Oil Prices: Key Market Insights for December 31
As 2024 wraps up, traders eye the pound, gold, and oil prices amid economic shifts and market expectations for the new year
Pound, Gold, Oil, China, US, Market, Economy
London: The pound is holding steady against the dollar as we close out 2024, sitting around $1.2552. Traders are feeling a bit cautious, anticipating a bumpy ride in 2025.
Karl Schamotta, a market strategist, thinks the pound will face some tough times ahead. He points to domestic issues and possible interest rate cuts that could weigh it down, especially with changes in US policies on the horizon.
He mentioned that the Bank of England might cut rates more than people expect, which could limit how much the pound can hold its ground against the euro. This could make things tricky for the pound early in the year.
But it’s not all doom and gloom. Schamotta believes there could be a chance for recovery later in 2025. If the dollar keeps gaining strength at the start of the year, the pound might struggle, but it could bounce back once the market gets a clearer picture of US policies.
As for gold, prices are pretty stable as traders are holding off on big moves, waiting for some key economic data to drop. The spot price is slightly up, sitting at $2,616.97 per ounce.
With the new year approaching, everyone’s looking for signs that could influence the Federal Reserve’s interest rate plans. It’s a typical holiday trading vibe, with folks just waiting to see what happens next.
Gold is on track to finish 2024 with a solid 27% gain, its best year since 2010. It’s been a go-to for many during uncertain times, even though rising interest rates have made it a bit less appealing.
On the oil front, prices are seeing some gains thanks to strong economic data from China and a weaker US dollar. Brent crude is up to $74.48 per barrel, while WTI is at $71.42.
China’s new measures to boost its economy are lifting spirits, especially with a massive fiscal stimulus package announced. This has everyone buzzing about increased oil demand.
Even with these positive signs, there’s still some worry about political uncertainties, especially with the incoming president’s policies. The market is keeping a close eye on how things unfold.
Overall, the FTSE 100 is pretty flat this morning, trading at 8,120.94 points. It’s a wait-and-see game as we head into the new year.