Spot gold steadied on Tuesday ahead of the Federal Reserve’s policy meeting as the market keenly awaited the US central bank’s outlook for cues on the interest rate path in 2025.
Spot gold ticked up 0.1 percent to $2,655.07 per ounce. US gold futures were flat at $2,672.40.
“The market has almost discounted a 25-basis-point cut; however the 2025 outlook, the Fed dot chart and (Fed Chair Jerome) Powell’s statements will be key to gauge the Fed’s stance for the first half of next year,” said Jigar Trivedi, a senior analyst at Reliance Securities.
“The yellow metal may witness a technical correction, but that would be an opportunity to go long.”
The Federal Open Markets Committee (FOMC) is due to convene later in the day for its last policy meeting of 2024 and will announce its interest rate decision on Wednesday.
Markets see a 96.3 percent chance of a quarter-point rate cut at the meeting but have only priced in a roughly 16.5 percent chance of a similar reduction in January, according to CME’s FedWatch tool.
