(Bloomberg) — Gold held a decline ahead of the Federal Reserve’s upcoming rate decision, with traders watching for clues about next year’s monetary-policy path.
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Bullion was steady near $2,647 an ounce, after slipping 0.2% in the previous session, as traders awaited the US central bank’s final policy meeting for the year later on Wednesday. While markets widely expect officials to announce another quarter-point cut, what will happen in 2025 isn’t clear as policies by the incoming Donald Trump administration may hinder further easing.
Fed policymakers may adjust their language in the post-meeting policy statement and raise the projected path of borrowing costs. They will also give updated quarterly economic forecasts. Lower rates are typically positive for gold, which doesn’t pay interest.
Traders will also be monitoring US data for further clues about the 2025 outlook, with gross domestic product and the core personal consumption expenditures index — the Fed’s preferred gauge of underlying inflation — due later this week.
The precious metal has risen by more than 28% this year, putting it on track for its biggest annual gain since 2010. Its strength has been supported by monetary easing in the US, safe-haven demand and sustained buying by the world’s central banks.
Elsewhere, the value of Indian gold imports surged to a record in November after the government cut customs levies. Full year demand is expected to grow by 7% to 905 tons in 2024 — the second-highest volume since 2015, according to a report this week from consulting firm Metals Focus. Still, elevated prices for bullion will likely weigh on consumption next year, with demand set to fall 4% in 2025, it added.
Spot gold was little changed at $2,647.06 an ounce at 8:24 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium were steady.
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