Gold prices stayed steady on Friday, with investors cautious about making big moves. All eyes are on the Federal Reserve’s interest rate decision next week.
– Current Prices: Spot gold stayed at $2,681.55 per ounce. It’s on track for a weekly gain of nearly 2%. U.S. gold futures dipped slightly to $2,705.40.
– Recent Movement: Earlier this week, gold prices hit a five-week high, but they dropped over 1% on Thursday as traders took profits.
– Focus on the Fed: Traders are eagerly awaiting the Fed’s choice on interest rates. There’s a strong (98.4%) chance they will reduce rates by 0.25%.
– Economic Factors: Recent data showed U.S. producer prices and consumer prices rose more than expected, reinforcing the idea that rates will be cut at the Fed’s meeting on December 17-18. Gold tends to do well when interest rates are low.
– Global Updates: The European Central Bank reduced rates for the fourth time this year, and the Swiss National Bank also cut rates by 0.50%, its biggest cut in almost a decade.
– Gold Demand Update: SPDR Gold Trust, the largest gold-backed fund, reported a decrease in gold holdings from 873.38 tons to 868.50 tons.
– Other Metals: Silver was steady at $30.94 per ounce, while platinum fell to $927.50, and palladium dropped to $965.22.
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