(UBS)
Gold prices are now around USD 2,670/oz, or up nearly 30% year to date. Bessent is viewed as a “fiscal hawk,” so his choice may temper federal deficit and execution concerns over the incoming president's plans. December rate-cut expectations have continued to slide, with the CME Fedwatch tool showing money markets are pricing a 56% chance of a December rate cut, down from 62% last week.
Our view: Gold volatility is to be expected amid competing signals on inflation, rates, geopolitics, and upcoming US trade policy. We see room for more gains in gold prices, with a target of USD 2,900/oz by end-2025. Gold remains a useful hedge against geopolitical tensions and fiscal concerns, in our view.
Read more in the Caught our attention section of the US Daily— US yields should fall amid policy constraints and Fed cuts , 25 November, 2024
