Gold Suddenly Stabilizes, What's Going on at the Fed?
Gold prices halted their rise after a four-day rally, as comments from Federal Reserve (Fed) officials raised doubts about whether the US would cut interest rates again next year. On Monday, gold was stable at around US$4,305/ounce, after rising 2.6% last week.
Although the Fed did cut interest rates on Wednesday, three policymakers apparently rejected the decision. The market is signaling that the next easing move could be more difficult and contentious, especially as 2026 approaches, when internal Fed views appear divided. The two officials who voted against it—Austan Goolsbee (Chicago) and Jeff Schmid (Kansas City)—even explained their reasons for their rejection on Friday.
This division comes amidst ongoing US inflation challenges, making interest rate cuts even more sensitive. Gold and silver typically benefit from low interest rates because they don't yield interest. In the Asian session, gold edged up 0.2% to US$4,306, silver rose 0.1% to US$62.01 after earlier falling sharply, while platinum strengthened and palladium weakened. (az)
Source: Newsmaker.id
