Gold Holds Steady Ahead of Fed Decision

13 Dec 2024 , 09:23 AM

With investors avoiding large wagers and focussing on the Federal Reserve’s impending interest rate decision at its meeting next week, gold prices remained stable on Friday.

Spot gold remained stable at $2,681.55 an ounce. Bullion has gained almost 2% so far this week and is expected to rise by the end of the week. At $2,705.40, U.S. gold futures fell 0.1%.

Following a brief five-week peak earlier in the day, gold prices fell more than 1% on Thursday due to profit-taking.

According to CME’s FedWatch Tool, traders are now focused on the Fed’s interest rate decision and believe there is a 98.4% chance of a 25 basis point drop.

Amid a spike in food prices in November, U.S. producer prices increased more than anticipated. Consumer prices rose by the highest in seven months in November, according to data released on Wednesday, supporting predictions that the Fed will lower interest rates during its meeting on December 17–18.

A low interest rate environment is ideal for the bullion.

The Swiss National Bank lowered its interest rate by 50 basis points on Thursday, the largest decrease in nearly a decade, and the European Central Bank lowered interest rates for the fourth time this year.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, said that its holdings decreased by 0.56% to 868.50 tonnes from 873.38 tonnes on Wednesday.

For feedback and suggestions, write to us at [e-mail]