In recent announcements from the World Gold Council, a notable shift is taking place in the global gold marketAfter reaching unprecedented heights this year, projections suggest that the rise in gold prices will decelerate by 2025. A report released by the Council reveals that since the beginning of 2024, gold prices have surged by over 30%. However, varied factors such as economic growth and inflation are expected to influence the rate of increase in the coming yearThe Council's report states that the complex prospects of interest rates may have repercussions on economic growth, which in turn could dampen demand from both investors and consumersThe report emphasizes that all eyes are on the United States; while a second term for the current administration may invigorate the local economy, it could also instill considerable anxiety among global investorsShould there be significant declines in interest rates or escalating geopolitical tensions or financial instability, gold prices are likely to rise

Generally, lower interest rates tend to favor gold, as it does not yield interest paymentsThe comprehensive performance of gold prices will ultimately hinge on four pivotal driving forces: economic expansion, risk sentiment, opportunity cost, and momentum.

In a related vein, sources acquainted with the plans of the Bank of Japan suggest that rate stability is preferred in upcoming meetings as decision-makers express a desire to scrutinize overseas risks and wage prospects for the following year closelyAny such decision could arguably heighten expectations for a rate hike in the consecutive January or March meetings, especially with more insights into anticipated wage increases next yearAccording to these insiders, no consensus has been reached internally within the Bank regarding the final decision, with several committee members believing that conditions have already been met for a December interest rate increase

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The conclusive decision will depend on each member's confidence regarding Japan's ability to achieve sustained price increases driven by wagesIf significant events occur next week, including a Federal Reserve decision (set to be announced shortly before the Bank of Japan meeting), that further weakens the yen and exacerbates inflation pressures, the central bank may feel compelled to actOverall, numerous decision-makers at the Bank of Japan appear to be in no rush to advance their plans, leaving those betting on the yen feeling cautiously anxious about the future.

Today, a slew of key economic data points will steer market interestThe adjusted export rates for Germany in October will offer insights into its foreign trade vitalityConcurrently, the U.Kwill release its GDP growth rate for October, alongside industrial output data and merchandise trade balance, which will provide a comprehensive view of the nation’s economic progress

In the United States, the import price index for November will influence inflation expectations, while Canada will report on its month-over-month manufacturing sales for October, reflecting the state of its manufacturing sector.

One core focal point remains the interaction between gold and the U.SdollarRecently, gold experienced a downward trend, slipping past the 2700 threshold, with current trading hovering around 2688. Profit-taking activities have applied some pressure on gold, compounded by the easing expectations surrounding a U.Sinterest rate cutFurthermore, positive economic data from the U.Shas also played a role in applying downward pressure on gold pricesTraders are closely monitoring resistance levels near the 2700 mark, while support remains around 2670.

In the currency realm, the dollar against the yen reflected a period of volatility yesterday, with the dollar gaining slightly to trade around 153.00. The dollar index has been buoyed by optimistic non-farm payroll figures and consumer price index data that aligns with forecasts, diminishing speculation of an impending Federal Reserve rate cut, thus supporting the dollar's ascent