GOLD HOLDS STEADY AS MARKETS RALLY INTO YEAR-END

ABC Bullion reports a stabilisation in precious metals as markets gain momentum into December.

Gold prices are holding above USD $2,630 and AUD $4,050 per troy ounce, while silver has steadied above USD $31.20 and AUD $48.40 per ounce. These moves follow a correction in November, where gold and silver saw declines of 4% and 8.6% in USD terms, respectively, breaking their months-long rallies in 2024.

The pullback was seen as a healthy adjustment, easing overextended sentiment and positioning in the metals markets. Meanwhile, broader financial markets have surged, with the S&P 500 up 5% over the last month and Bitcoin breaking the USD $100,000 milestone, signalling heightened investor exuberance.

Despite the November retracement, gold and silver remain on track for over 30% gains in AUD terms for 2024. ABC Bullion notes that factors such as persistent inflation, declining interest rates, elevated geopolitical risks, and the likelihood of a rotation into safe-haven assets could support further gains in the year ahead.

Read the full report here.