Gold remained near $2,650 per ounce on Wednesday, trading within a narrow range ahead of the Federal Reserve’s monetary policy announcement later today.
Gold steady before Powell
While the Fed is widely expected to implement a 25bps rate cut, traders are primarily focused on signals regarding next year’s interest rate path, amid uncertainty over how policies under the incoming Trump administration might affect the rate outlook. Meanwhile, stronger-than-expected US retail sales data, which showed a 0.7% increase in November, fueled speculation that the Fed might ease its policy adjustments.
Gold is up by 28% this year
Despite this, the precious metal has gained more than 28% this year, putting it on track for its largest annual increase since 2010, driven by US monetary easing, safe-haven demand, and ongoing central bank purchases. In other news, Indian gold imports surged to a record in November following a customs levy reduction, with full-year demand from the key consumer expected to rise 7% in 2024, the second-highest increase since 2015.
