Gold Prices Steady in Quiet Trade

23 Dec 2024 , 10:00 AM

After rising on a generally weaker U.S. dollar and Treasury yields on Friday, when U.S. economic data suggested a slowing in inflation, spot gold was mostly constant on Monday in thin trade.

Spot gold was trading steady at $2,621.19 an ounce. At $2,637.00, U.S. gold futures fell 0.3%.

After showing little progress in recent months, data released on Friday indicated that monthly inflation in the United States decreased in November. Following an unrevised 0.2% advance in October, the personal consumption expenditures (PCE) index increased by 0.1% last month.

Mary Daly, president of the San Francisco Federal Reserve, and two other Fed policymakers stated Friday that they believed the Fed would probably start cutting rates again next year, but they would take their time because the “recalibration phase” was done.

Gold fell to its lowest level since Nov. 18 last week due to the Fed’s 25 basis point drop on Dec. 18, its cautious economic projections, and prospects of fewer cuts in 2025.

To surprise the market, which had anticipated a two percentage point hike, the Russian central bank held the benchmark interest rate at 21% on Friday. It claimed that the recent tightening established circumstances for inflation to decline towards its objective.

While increased rates in China are anticipated to perhaps offset forthcoming seasonal demand, the demand for gold in India remained muted last week as erratic prices caused prospective buyers to postpone purchases.

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