Gold Edges Higher Ahead of Fed Rate Cut
Gold edged higher ahead of the Federal Reserve’s final interest rate decision of the year, with traders also weighing the outlook for 2025 policy.
The bullion’s gains followed a 2.6% decline in the previous two sessions on the back of 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, since it doesn’t pay interest.
Source: Bloomberg