Gold Steadies as Markets Weighs Outlook for US Interest Rates
Gold was steady as traders weighed the outlook for monetary policy after the Federal Reserve’s preferred measure of underlying inflation came in below expectations last week.
Bullion traded near $2,620 an ounce in thin trading after closing 1.1% higher on Friday, following the print of the core personal consumption expenditures price index for November. The reading was muted, a step in the right direction for policymakers looking to reduce interest rates further in 2025.
Lower rates are typically a positive for gold, as it doesn’t pay interest.
Gold has climbed around 27% this year and hit record price levels, supported by US monetary easing, safe-haven demand, and buying by the world’s central banks. However, the rally eased after the election of Donald Trump, which boosted the dollar. A stronger greenback makes commodities priced in the currency more expensive for most buyers.
Spot gold was little changed at $2,620.19 an ounce at 9:12 a.m. in Singapore after falling 1% last week. The Bloomberg Dollar Spot Index was flat, following a 0.6% weekly gain. Platinum rose, while silver and palladium were steady.
Source: Bloomberg
