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Gold prices have been under a lot of pressure lately. They dropped below $2,600 per ounce because there weren’t any new updates on China’s economy, and some strong data from the U.S. worried investors. However, gold did bounce back a bit at the end of the week, closing at $2,624 on Friday, with a slight 1.13% gain on that day. Despite this, gold ended the week nearly 1% lower. During the week, its price fluctuated between $2,583 and $2,693.

Gold got a bit of a boost after the U.S. released its PCE Price Index for November, an important measure of inflation. The numbers were slightly better than expected, showing a slower rise in prices. Here’s the breakdown:

– Monthly PCE: 0.1% (Forecast: 0.2%)
– Yearly PCE: 2.4% (Forecast: 2.5%)
– Core PCE (Monthly): 0.1% (Forecast: 0.2%)
– Core PCE (Yearly): 2.8% (Forecast: 2.9%)

These numbers are significant because they affect how the Federal Reserve (Fed) decides on interest rates. In a meeting on November 18, the Fed lowered the Fed Fund rate by 0.25%, bringing it to a range of 4.25% to 4.50%. However, they also suggested they might keep rates higher for a while, which had some members concerned.

Other countries’ central banks, like the Bank of England and the Bank of Japan, decided not to make big changes, which helped support the U.S. dollar.

Looking ahead, important U.S. reports coming up include Consumer Confidence for December and how many durable goods were ordered in November. There’s also the final report on U.K. GDP for the third quarter that traders will watch closely.

Total global gold holdings in ETFs dropped to 82.647 million ounces, marking a third week of declines.

Due to the Fed’s decisions and strong U.S. economic news, the U.S. dollar index rose slightly but settled lower than its peak. Yields on U.S. government bonds also saw a rise.

In conclusion, even though the PCE numbers gave gold a temporary boost, other strong U.S. data means the Fed might keep interest rates high. Traders may be cautious, especially since trading could be quieter with the holiday season coming. For gold, there’s tough resistance around $2,670, while support levels are at $2,606 and $2,580. Overall, gold might still face difficulties pushing higher in the near term, and a dip to $2,536 is also possible.

In December 2024, foreign portfolio investors (FPIs) have started putting money back into the Indian stock market, investing a total of Rs 21,789 crore so far. This is a big change after several months of pulling money out of the market. With this new investment in December, FPIs have put in Rs 6,770 crore in total for the year, compared to the Rs 15,019 crore they took out by the end of November.

Before this, FPIs sold a lot of Indian stocks, taking out Rs 21,612 crore in November and a whopping Rs 94,017 crore in October. In December, most of the money came into three main areas: financial services (Rs 7,424 crore), IT (Rs 6,754 crore), and real estate (Rs 4,689 crore). However, FPIs sold off Rs 5,337 crore worth of oil and gas stocks, along with Rs 1,823 crore of auto stocks, and Rs 1,655 crore of FMCG shares.

Despite selling off some shares, sectors like telecom and services started to attract attention again in December, getting investments of Rs 627 crore and Rs 553 crore. Oil and gas have been the biggest area for FPIs pulling money out in 2024, totaling Rs 50,851 crore, while financial services have seen withdrawals nearing Rs 54,000 crore for the year.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that the sudden switch from buying to selling by FPIs has made the stock market shaky. At the start of December, FPIs were actively buying stocks, investing Rs 14,435 crore in the cash market until December 13. However, they flipped to selling, letting go of Rs 15,828 crore in the week ending December 20.

Factors like a stronger dollar, rising U.S. bond yields, and worries about slower growth in India helped trigger this change. Vijayakumar believes that as the U.S. economy stays strong, foreign investors might return to buying once growth in GDP and corporate earnings shows signs of improvement. He thinks that upcoming Q3 data might show a slight increase, and despite recent selling, prices for quality large companies in banks and sectors like pharma, IT, and digital platforms are becoming more attractive for investors.

This year, FPIs have had lots of ups and downs. They brought in the most money in September, with Rs 57,724 crore, while they invested Rs 7,322 crore in August, which was less than the Rs 32,359 crore in July. In June, they were back to buying at Rs 26,565 crore after selling in April and May. Even though they took out Rs 25,744 crore in January, FPIs were net buyers in February and March.

Recently, FIIs sold Rs 3,597.82 crore worth of stocks, while domestic institutional investors (DIIs) bought Rs 1,374.37 crore. The new inflows in December show that investor confidence is improving with global uncertainties easing and key sectors looking attractive.

Google says the U.S. government’s idea to make it sell its Chrome web browser is “extreme” and not fair. The company is asking a judge to be careful, saying such a move could hurt new ideas and investments.

In a recent statement, Google responded to the government’s request by saying that they have a better solution. They argued that selling Chrome does not relate to the illegal actions the judge found — which were about unfair contracts with phone and internet companies.

The U.S. Justice Department (DOJ) wants the judge to order Google to sell Chrome and make other changes to help competition in online searching. Google believes any punishment should be similar to the unfair practices they were accused of.

Google’s vice president, Lee-Anne Mulholland, explained that their proposal would allow other browsers, like Apple’s Safari, to work with any search engine they choose. This comes after the judge found Google was wrong for paying companies like Apple to be the default browser.

Google wants to let device makers preload many search engines and not require them to include Chrome, making it easier for users to pick.

This is Google’s first response since the judge decided they had unfairly dominated online search and advertising. Google plans to appeal but must wait until the case ends.

The judge has scheduled a meeting in April to decide what needs to change to improve competition, with a final decision expected by August 2025.