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UBS strategists predict a continued rally in gold prices, projecting them to reach $2,900/oz by the end of 2025. Key drivers include central banks' ongoing gold accumulation, rising investor demand for safe-haven assets amid geopolitical uncertainties, and anticipated lower interest rates. They recommend a 5% allocation to gold in USD-based balanced portfolios as a diversifier.
US President Donald Trump's tax cuts and tariffs may lead to increased inflation, complicating the Federal Reserve's ability to lower interest rates. As the DAX index struggles to maintain its position after recent highs, a potential correction looms, with key support levels at 20,000 points and below. Investors are cautious ahead of the Fed's upcoming interest rate decision.
IG
India's trade deficit reached a record $37.84 billion in November, driven by high gold imports, raising concerns about the economy. The stock market has faced significant pressure, with the Sensex dropping 2,000 points over three days, influenced by a weak rupee and foreign capital outflows amid cautious market sentiment ahead of the US Federal Reserve's policy meeting.
Coffee prices are on the rise as Nestle and Continental Coffee implement multiple hikes this year, impacting consumers significantly. Nestle's 45-gram jar has increased from Rs 180 to Rs 230, while the 90-gram jar rose from Rs 350 to Rs 440. The surge is attributed to rising Arabica bean prices, driven by adverse weather in Brazil and Vietnam, alongside increased input costs for both companies.
Ohio Representative Derek Merrin has introduced House Bill 703, allowing the state treasury to invest in Bitcoin to address concerns over the devaluation of the U.S. dollar. The bill aims to create a BTC fund, granting the state treasurer authority to allocate funds flexibly as part of Ohio's financial strategy. If not passed before the current legislative session ends on December 31, 2024, the proposal will need to be reintroduced in the next session starting January 2025.
Bitcoin surpassed USD 100,000 for the first time, driving the total cryptocurrency market cap to over USD 3.89 trillion, before a sharp pullback led to significant liquidations. Meanwhile, altcoins like XRP, ADA, and XLM surged, fueled by changing regulatory sentiment and strong market performance, with altcoin market cap rising to USD 1.85 trillion. Ethereum outperformed Bitcoin, attracting institutional interest, while renewed NFT activity could further boost demand.
Swiss rents experienced a slight increase in November, with Nidwalden seeing the highest rise at 2.1%. Other cantons like Schaffhausen, Valais, and Schwyz also reported gains, while Graubünden faced a significant decline of 4.4%. Urban centers, particularly Zurich and Lausanne, recorded a 1.6% increase, countering previous declines, while Geneva and Lugano saw minor decreases.
The Swiss stock market is set to open lower, with the SMI index down 0.24% ahead of the US Federal Reserve's monetary policy decision and UK inflation data. Analysts anticipate a 25 basis point rate cut from the Fed, despite concerns over inflation in a strong US economy. Roche is slightly up after receiving a CE mark for a new testing device, while Dätwyler faces a significant loss due to a restructuring plan.
European Parliament member Sarah Knafo has proposed establishing a strategic Bitcoin reserve for Europe, inspired by similar moves in the US under Donald Trump's administration. Knafo argues this would protect citizens from inflation and opposes the European Central Bank's digital euro plans, citing concerns over economic freedom. Amidst this, Bitcoin's price has surged to an all-time high, reflecting growing global interest in the cryptocurrency.
European stocks closed slightly higher as investors awaited the U.S. Federal Reserve's interest rate decision. Renault shares surged 5.39% amid merger talks with Nissan and Honda, while U.K. inflation rose to 2.6%, dampening hopes for a rate cut from the Bank of England. The cost of renting in London jumped 11.6%, marking the fastest rise on record.
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