Gold Steady After Powell Flags Cautious Approach to Rate Cuts
Gold steadied after a modest gain as the market digested remarks from the head of the Federal Reserve before data that may influence the central bank’s next interest-rate decision.
Bullion traded near $2,645 an ounce after Fed Chair Jerome Powell said he expects officials can move cautiously as they continue to lower rates. US nonfarm payroll figures due Friday are the next major data point before policymakers meet on Dec. 17-18 in Washington, with swaps markets pricing in a 25-point cut.
Gold has scope to push higher next year, likely hitting a record, on the Fed’s move to cut rates and buying by central banks, according to Macquarie Group Ltd. Prices are set to average $2,650 an ounce in the first quarter of 2025, it said.
Spot gold was up 0.1% at $2,645.93 an ounce as of 8:21 a.m. in London, after closing 0.2% higher on Wednesday. The Bloomberg Dollar Spot Index fell 0.1%. Silver dropped, while platinum and palladium advanced.
Source: Bloomberg
