FX.co ★ Gold Steady Ahead of Fed Meeting

Gold prices steadied around $4,200 per ounce on Monday, following a weekly decline. The market participants are now looking ahead to the Federal Reserve’s year-end policy meeting, with widespread expectations for an interest rate cut. Recent mixed US employment figures and core inflation metrics aligning with projections bolster the argument for further rate cuts. Current market predictions suggest an 88% likelihood of a 25 basis point reduction in the funds rate, which currently stands between 3.75% and 4.0%. Projections also anticipate two more cuts in the coming year. Besides the rate decision, the Fed’s updated economic forecasts, extending to 2026 and beyond, will be under close scrutiny. Additionally, the JOLTS job openings report, due on Tuesday, presents the last major labor market indicator ahead of the Federal Reserve’s announcement and will be observed keenly. On a separate note, China’s central bank has boosted its gold reserves for the 13th consecutive month, reaching approximately 74.12 million troy ounces.