Gold Market Update: Geopolitical Risks Fuel Safe-Haven Demand, Lifting Prices

Deep News12-18 09:25

On December 17, COMEX gold rebounded, closing at $4,371.4 per ounce, up 0.90%. Meanwhile, SHFE gold maintained high volatility during the night session, settling at 982.48 yuan per gram, a 0.53% increase.

Recent developments have heightened market uncertainty. Following reports of delays in Oracle's data center projects last Friday, further concerns emerged as negotiations stalled for Blue Owl Capital's planned $10 billion financing and equity investment in a Michigan data center project—a key partner for Oracle. These setbacks amplified worries over AI-related transactions, dragging down major U.S. stock indices and boosting safe-haven demand for gold.

Geopolitical tensions also contributed to the bullish sentiment. The U.S. government's move to block sanctioned oil tankers bound for Venezuela, coupled with potential new sanctions against Russia, intensified risk aversion, providing strong short-term support for precious metals.

In Japan, expectations grew that the Bank of Japan might raise its overnight call rate by 25 basis points to 0.75% amid sustained wage growth and milder-than-expected U.S. tariff impacts. However, with the hike largely priced in, the liquidity shock is anticipated to be less severe than in August 2023, warranting cautious optimism for gold's upward momentum.

Market data sourced from Wind and Everbright Futures Research Institute.

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