Gold prices firmed on Monday as investors turned their focus on the Federal Reserve’s meeting on Dec. 17-18, when it is widely expected to deliver its third interest rate cut this year.
Gold falls massive Rs5,000 per tola in Pakistan
Fundamentals
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Spot gold held ground at $2,649.53 per ounce, as of 0037 GMT. US gold futures eased 0.3% to $2,668.00.
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Investors view it as a near given that the Fed will cut rates by a quarter of a percentage point this week, while the central bank’s language on rate cuts in 2025 is in focus.
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Markets fully expect a cut at the upcoming meeting, but have only priced in a roughly 18% chance of another reduction in January, according to CME’s FedWatch tool.
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Non-yielding bullion tends to shine in a lower interest rate environment and during economic or geopolitical crisis.
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On the geopolitical front, Israeli strikes in Gaza killed at least 53 Palestinians, including a journalist and rescue workers, medics said, while the Israeli military said its air and ground forces in the north of the enclave killed dozens of militants and captured others.
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SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.53% to 863.90 tonnes on Friday from 868.50 tonnes on Thursday.
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Gold discounts in India widened last week to their highest in over two months as a rebound in domestic prices during the wedding season curtailed demand, while China’s stimulus measures did little to revive consumer confidence in the key market.
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Spot silver was flat at $30.56 per ounce, platinum shed 0.2% to $922.95, while palladium gained 0.5% to $957.56.
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