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Markets Poised For Year-End Catalysts as Haven Assets Find Support

2 weeks ago

Investor attention has shifted sharply toward upcoming economic and geopolitical catalysts, with options trading indicating that these events may eclipse the Federal Reserve’s December meeting in market significance. The dollar index held steady after a three-day decline, suggesting that the post-election rally driven by President-elect Donald Trump’s anticipated policies has lost momentum.

In a key political development, Trump named Howard Lutnick, CEO of Cantor Fitzgerald LP, as his pick to head the Commerce Department. Lutnick’s appointment signals a focus on advancing Trump’s trade and tariff strategies, which are expected to play a central role in reshaping US economic policies.

Gold extended its winning streak to a third day, buoyed by robust demand for safe-haven assets amid escalating tensions in Russia’s ongoing conflict with Ukraine. The renewed geopolitical uncertainty has reinforced gold’s role as a preferred hedge against volatility.

Meanwhile, oil prices remained stable as markets digested an industry report pointing to a rise in US crude inventories, with traders awaiting confirmation in official government data. Brent and West Texas Intermediate crude hovered near recent levels, reflecting a cautious tone amid mixed demand and supply signals.

As the year draws to a close, markets are bracing for pivotal events that could shape the economic landscape well into 2024, with investors balancing policy expectations, geopolitical risks, and shifts in global trade dynamics.

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