Forecasting the direction of gold for the rest of this year

At the beginning of the trading session on December 16 (US time), world gold prices increased. The market expects the US Federal Reserve (Fed) to cut interest rates by 25 basis points at its meeting on December 17-18 (US time). Investors took advantage of buying gold to get ahead of the uptrend after the Fed's decision.

After a series of unusual developments in gold in recent times, experts are still cautious with the precious metal in the short term. Some investors are tending to sell to take profits in the last weeks of the year.

Marc Chandler, CEO of Bannockburn Global Forex, said that the direction of gold depends on the Fed's decision. Gold is at risk of falling to the $2,600/ounce mark if the Fed signals a smaller reduction or stops cutting interest rates next year.

Forecasts that the US economy will likely be more stable and stronger next year. This means the Fed has little reason to lower interest rates, and gold prices may not receive as much support as this year.