GOLD: Higher & Looking At Its First Annual Gain In Three

Gold is slightly weaker in the Asia-Pac session, after closing 0.7% higher at $2067.81 on Tuesday.

• Tuesday’s move came despite a slight shift higher in US Treasury yields, led by the short end. The session was however data-light, with volumes subdued. European exchanges were closed for the Boxing Day holiday.
• Nevertheless, FOMC-dated OIS is pricing in a nearly 80% chance of a cut by March, with ~90bps of easing by November 2024.
• Typically rate cuts are bullish for non-interest-bearing assets like bullion.
• Bullion is trading near a record high, up 13% for the year and on track for its first annual increase in three years.