Gold Prices Remained Stable Amid US-Fed Meeting Results on December 18

On December 17, 2024, Gold prices remained stable with spot gold edging up by 0.1%, reaching $2,655.07 per ounce. Traders are closely watching the Federal Reserve’s policy meeting on December 18, which is anticipated to shed light on the central bank’s outlook for interest rates and its potential impact on gold prices in the coming year.

The Federal Reserve is expected to announce a 25-basis-point rate cut during its final policy meeting of 2024. This anticipated move is a significant factor drawing attention from market participants, who are keen to understand how it could influence the short- and long-term price movements of gold.

Gold’s Performance in Low-Interest-Rate Environments

Gold, being a non-yielding asset, typically thrives in low-interest-rate environments or during periods of economic and geopolitical instability. With global challenges like inflation and rising international tensions, gold continues to be favoured by risk-averse investors. Geopolitical events, such as the US imposing new sanctions on North Korea and Russia, have contributed to increased market volatility. These developments often enhance gold’s appeal as a safe-haven asset, making it an attractive investment during uncertain times.

Investors are also keeping a close watch on upcoming US economic data, including GDP and inflation reports. These figures could influence market sentiment and further shape gold’s price movements in the near future.

Gold Prices in India

In India, gold prices remained elevated on December 17, with the price of 24-carat gold at ₹77,030 per 10 grams and 22-carat gold at ₹70,611 per 10 grams. The strong demand for gold in India during the festive season often mirrors global trends, with price fluctuations closely linked to both international and local factors.

Gold is widely regarded as a hedge against inflation and geopolitical uncertainties. However, with prices holding steady around the $2,600 per ounce level, investors are left wondering whether gold will continue to rise or experience a technical pullback. The Federal Reserve’s decision and the broader global economic landscape will be crucial in determining gold’s future price trajectory.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.