|

Gold price partially reverses previous week's significant gains – Commerzbank

The Gold price lost more than 3% on Monday and fell to $2,620 per troy ounce, Commerzbank’s commodity analyst Carsten Fritsch notes.

Gold is not completely immune to current developments

“This was triggered by news of a possible agreement on a ceasefire between Israel and the Hezbollah militia in Lebanon, which could reduce demand for Gold as a safe haven. Last week, Gold recorded its strongest weekly gain since March 2023 due to the escalation in the Ukraine war, rising by 6% and topping the $2,700 mark for the first time in a fortnight on Friday.”

“In doing so, Gold was also able to defy the appreciation of the US dollar and a further reduction in the Fed's interest rate cut expectations. According to Fed Funds Futures, an interest rate cut of 25 basis points in December is now only a good 50% priced in and an interest rate cut of 25 basis points at one of the two upcoming meetings, i.e. by the end of January, is not even fully priced in.”

“The sharp price decline yesterday showed that Gold is not completely immune to these developments once the support from geopolitical tensions diminishes somewhat."

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD flatlines below 1.1800 ahead of Fed Minutes

EUR/USD struggles to find direction and continues to move sideways below 1.1800 for the second consecutive day on Tuesday as markets remain in holiday mood. Later in the American session, the Federal Reserve will publish the minutes of the December policy meeting.

GBP/USD retreats to 1.3500 area following earlier climb

GBP/USD loses its traction and trades flat on the day near 1.3500 after rising to the 1.3530 area early Tuesday. Trading conditions remain thin ahead of the New Year holiday, limiting the pair's volatility. The Fed will publish December meeting minutes in the late American session.

Gold rebounds toward $4,400 following sharp correction

Gold gathers recovery momentum and advances toward $4,400 on Tuesday after losing more than 4% on Monday. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron steadies as Justin Sun invests $18 million in Tron Inc.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).