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Gold prices muted before Fed rate decision; dollar in spotlight


Published on 2024-12-16 11:01:17 - Investing
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  • Traders remained wary of the yellow metal before a Fed meeting this week. The central bank is widely expected to cut rates by 25 basis points at the conclusion of the meeting on Wednesday, bringing rates down by a total 100 bps in 2024.

Gold prices remained stable as investors awaited the U.S. Federal Reserve's interest rate decision, with expectations leaning towards a pause in rate hikes due to recent economic indicators suggesting a slowdown. Meanwhile, copper prices experienced a decline due to disappointing economic data from China, the world's largest consumer of metals, which reported weaker than expected industrial output and retail sales for October. This data raised concerns about the health of the Chinese economy, impacting base metal prices. Additionally, the market was also influenced by a stronger U.S. dollar, which typically makes commodities priced in dollars more expensive for foreign buyers, thus affecting demand.

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[ https://ph.investing.com/news/commodities-news/gold-prices-muted-before-fed-rate-decision-copper-hit-by-weak-china-data-1580251 ]