Gold steadies amid political uncertainty in South Korea and France

Gold prices remained steady as traders assessed the political unrest in South Korea and France, which has sparked increased demand for safe-haven assets.

Bullion was little changed near $2,640 an ounce on Wednesday, after rising 0.2% in the previous session, News.Az reports, citing foreign media.

South Korean President Yoon Suk Yeol made a surprise declaration of martial law on Tuesday night, before rescinding the decree just hours later. Opposition parties have since submitted a motion calling for his impeachment. In France, President Emmanuel Macron called on lawmakers to reject a vote that would topple the government.

The precious metal has fallen more than 5% from a record high in late October, as the dollar rallied following Donald Trump’s election win and tensions eased in the Middle East. Still, prices remain about 28% higher this year, supported by US monetary easing and central-bank purchases.

JPMorgan Chase & Co. maintained its bullish outlook for gold in its 2025 year-ahead outlook, saying the post-election sell off “was a positioning-driven stumble, not a sea change.” The bank forecasts gold will reach an average of $2,950 an ounce in the fourth quarter of next year.

US jobs openings data suggested demand for workers is stabilizing, which is important for Federal Reserve officials who are trying to avoid any further weakening in the labor market as they gradually lower interest rates. US nonfarm payroll figures due Friday are the next major data point before the Dec. 18 meeting, where a 25-point cut is expected.

Spot gold fell 0.1% to $2,641.81 an ounce by 10:28 a.m. in London, erasing an earlier gain. The Bloomberg Dollar Spot Index rose 0.1%. Silver, platinum and palladium were all lower.

News.Az