Gold drops as investors book profits ahead of Fed rate cut expectations
Date
12/15/2024 8:29:39 AM
(MENAFN) Gold prices dropped on Thursday as investors took profits following a rise to a more than one-month high, driven by growing expectations of an interest rate cut by the Federal Reserve next week.
Spot gold fell 0.3 percent to USD2,711.00 per ounce by 0455 GMT, after hitting USD2,725.79 earlier in the session, the highest since November 6. US gold futures declined by 0.4 percent to USD2,746.80.
Despite US consumer prices increasing by the most in seven months in November, the Federal Reserve is still expected to reduce rates for a third time next week, amid signs of a cooling labor market.
Attention is now turning to the US Producer Price Index data, due at 1330 GMT, for clues about the Fed's policy in 2025.
Meanwhile, the European Central Bank is widely expected to announce another rate cut on Thursday and indicate further easing in 2025.
Gold, which does not yield income, is considered a safe investment in times of economic and geopolitical instability, and benefits from low interest rates.
In other news, the United Nations General Assembly overwhelmingly voted on Wednesday to call for an immediate, unconditional, and permanent ceasefire between Israel and Palestinian militants Hamas in Gaza.
Spot silver rose 0.3 percent to USD32.02 per ounce, platinum increased by 0.4 percent to USD943.75, and palladium gained 0.8 percent to USD989.20.
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