Gold Down for Second Day Ahead of U.S. Rate Cut
Gold fell for a second day ahead of the Federal Reserve’s final interest rate decision of the year, with traders also weighing the outlook for 2025 policy.
Bullion was trading near $2,652 an ounce, having fallen 2.6% in the previous two sessions following mixed U.S. data last week — including rising wholesale inflation and higher-than-expected jobless claims.
The Fed is widely expected to cut rates by 25 basis points at its meeting on Wednesday, and swaps traders are pricing in a total of three quarter-point cuts over the next 12 months. Lower interest rates are usually positive for gold, as it does not pay interest.
Source: Bloomberg