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Gold companies in thin trade as financiers weigh Fed outlook

Gold rates firmed on Monday, although trading was thin due to the holiday season and as investors looked for cues on the U.S. Federal Reserve's financial policy trajectory for next year after it indicated gradual easing in its most current meeting.

Area gold included 0.3% at $2,628.63 per ounce, as of 0941 GMT, trading in a narrow $16 range. U.S. gold futures relieved 0.1% to $2,643.10.

( It's a) Peaceful day with lower liquidity and restricted data releases throughout the holiday season, stated UBS analyst Giovanni Staunovo.

We retain a useful outlook for gold in 2025, targeting a move to $2,800/ oz by mid-2025.

The Fed cut rates by 25 basis points on Dec. 18, although the central bank's predictions of fewer rate cuts in 2025 resulted in a decrease in gold costs to their lowest level since Nov. 18 recently.

U.S. consumer spending increased in November, supporting the Fed's hawkish position, a belief that was also shared by San Francisco Fed President Mary Daly.

Greater interest rates dull non-yielding bullion's appeal.

Presently, we remain in a lull for Christmas week with the gold price trending sideways. Federal Reserve policy is clear with expectations of rising rate of interest in the second half of the year, said Michael Langford, primary financial investment officer at Scorpion Minerals.

The next big effect is the incoming presidency of (Donald). Trump and the preliminary governmental decrees that he might. declare. This has the possible to add to market volatility and. be bullish for gold costs.

Gold, frequently considered a safe-haven possession, normally. performs well during financial unpredictabilities.

Area silver rose 0.8% to $29.75 per ounce and. platinum climbed 1.3% to $938.43. Palladium. steadied at $920.53.

(source: Reuters)