Gold Steady Ahead of Fed Meeting

17 Dec 2024 , 10:32 AM

Ahead of the Federal Reserve’s policy meeting on Tuesday, spot gold prices remained stable as the market closely anticipated the U.S. central bank’s 2025 projection, which might influence the future course of gold.

Spot gold was trading steadily at $2,652.30 an ounce. At $2,669.10, U.S. gold futures remained unchanged.

Later today, the Federal Open Markets Committee (FOMC) will meet for its final policy meeting of 2024.

According to CME’s FedWatch tool, markets have priced in a 14.7% possibility of another rate cut in January, but they see a 98.2% chance of a quarter-point cut during the meeting.

On December 19, it is anticipated that the Bank of Japan, Bank of England, Riksbank, and Norges Bank will make their policy decisions.

If inflation reaches its target of 2%, the European Central Bank is anticipated to further reduce interest rates.

According to most economists surveyed by Reuters, the Swiss National Bank will lower interest rates by 25 basis points in March before remaining inactive until at least 2026.

When interest rates are low and there is a geopolitical or economic crisis, non-yielding gold tends to shine.

On the geopolitical front, the Treasury Department said that the fresh sanctions the United States imposed on Russia and North Korea on Monday targeted Pyongyang’s military assistance to Moscow and its financial operations.

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