Gold prices edge higher on short covering
Spot gold edged higher on Monday, supported by short covering after a weekly loss on Friday due to the Federal Reserve's cautious stance on rate cuts in the upcoming year.
Spot gold was up 0.2% to $2,626.44 per ounce, as of 0313 GMT. U.S. gold futures eased 0.1% to $2,642.10.
The Fed's 25-basis-point reduction on Dec. 18 and the cautious note struck by its economic projections and expectations of fewer cuts in 2025 pushed gold to its lowest since Nov. 18 last week.
On Friday, gold gained on a softer U.S. dollar and Treasury yields when U.S. economic data hinted at a slowdown in inflation.
Data on Friday showed monthly inflation in the U.S. slowed in November after little improvement in recent months. The personal consumption expenditures (PCE) index rose 0.1% last month after an unrevised 0.2% gain in October.
Spot silver rose 0.7% to $29.72 per ounce and platinum climbed 1% to $935.47, while palladium added 0.2% to $922.31.
Source: Reuters
