Gold Steadies as Traders Weigh Outlook for Fed Rate Cuts
Gold traded in a narrow band 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 $2,626 an ounce in thin trading after closing 1.1% higher on Friday, following the print of the core US 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.
The precious metal has climbed more than a quarter this year and hit record 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 little changed at $2,626.17 an ounce as of 10:06 a.m. in London, after falling 1% last week. The Bloomberg Dollar Spot Index rose 0.2%. Platinum, palladium and silver were all higher.
Source : Bloomberg
