Gold prices hold steady on Monday amid weaker dollar, lower Treasury yields
Date
12/23/2024 2:04:49 AM
(MENAFN) Spot Gold prices remained mostly steady at the start of trading on Monday, with thin market activity following Friday’s gains driven by a weaker dollar and lower Treasury yields, according to a news agency. The stability in gold prices reflected cautious investor sentiment after U.S. inflation data came in below expectations, reinforcing hopes that the Federal Reserve will continue to reduce interest rates in the coming year.
By 00:57 GMT, spot gold prices were at USD2,621.19 per ounce. However, U.S. gold futures saw a slight decline, falling 0.3 percent to USD2,637 per ounce. The fluctuations in gold prices highlight the impact of shifting monetary policies on the precious metals market. Typically, higher interest rates diminish the appeal of non-yielding assets like gold, making rate expectations a key factor for investors.
Friday’s data revealed a slowdown in monthly inflation in the United States, signaling a continued improvement after recent months of slight increases. The personal consumption expenditures (PCE) index, a key measure of inflation, rose by just 0.1 percent in November, following a revised 0.2 percent increase in October. This data added to the growing narrative of easing inflationary pressures in the U.S. economy.
Federal Reserve officials, including San Francisco Fed President Mary Daly and two other policymakers, indicated on Friday that while they expect the central bank to resume interest rate cuts next year, they would likely pause further adjustments for now. Daly stated that the Fed has concluded its recalibration phase, signaling a measured approach to policy changes as inflation continues to moderate.
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