Possible BUY on GOLD
Reason for buying?
- FED Lowering their interest rates which is good for the Gold.
- Gold was a traditional Hedge against inflation, with Trump proposed tariff which likely inflationary, I guess Gold will get some demand on this
- Demand for Gold in some Asian countries. China's central bank resumes gold purchases after six-month hiatus in Nov (Source: Reuters)
- Geo Political events.
- Rumors about "Santa Rally" that happening every year (Seasonality).
- End-year rebalancing flow ( Bargain-Expensive-Cheaper)
Note
The annual inflation rate in the US rose for a 2nd consecutive month to 2.7% in November 2024 from 2.6% in October, in line with expectations. The rise is partly influenced by low base effects from last year. Energy costs declined less (-3.2% vs -4.9% in October), mainly due to gasoline (-8.1% vs -12.2%) and fuel oil (-19.5% vs -20.8%) while natural gas prices rose 1.8%, compared to 2%. Also, inflation accelerated for food (2.4% vs 2.1%) and prices fell much less for new vehicles (-0.7% vs -1.3%). On the other hand, inflation slowed for shelter (4.7% vs 4.9%) and transportation (7.1% vs 8.2%) and prices continued to decline for used cars and trucks (-3.4%, the same as in October). On a monthly basis, the CPI rose by 0.3%, the most since April, slightly above October's 0.2%, and also matching forecasts. The index for shelter rose 0.3%, accounting for nearly 40% of increase. The core CPI rose 3.3% on the year and 0.3% on the month, the same as in October and in line with forecasts
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