Gold Holds Two-Day Decline Ahead of Expected Rate Cut in US

SEATTLE (Scrap Monster): Gold held a two-day drop ahead of the Federal Reserve’s final interest-rate decision of the year, with traders also weighing the policy outlook for 2025.

Bullion traded near $2,652 an ounce, after falling 2.6% in the previous two sessions following mixed US data last week — including accelerating wholesale inflation and higher-than-expected jobless claims.

The Fed is expected to cut interest rates by 25 basis points at its meeting on Wednesday, and swaps traders are pricing in a total of three quarter-point cuts over the next 12 months. Lower rates are typically positive for gold, as it doesn’t pay interest.

The precious metal has risen about 29% so far this year, putting it on track for its biggest annual gain since 2010. Its breakneck run has been supported by Fed easing, safe-haven demand and sustained buying by the world’s central banks.

Looking ahead, the World Gold Council expects prices will rise more slowly in 2025, tempered by variables like growth and inflation.

Spot gold was up 0.2% at $2,652.80 an ounce as of 7:15 a.m. in London. The Bloomberg Dollar Spot Index was down 0.1%, after gaining 0.8% last week. Silver and palladium were little changed, while platinum fell 0.4%.

Courtesy: www.finance.yahoo.com