- Gold Prices: Steady at $2,652.30 (₹2,19,380 per kg) as of Tuesday.
- Rate Cut Expectations: The Fed meeting holds a 98.2% chance of a quarter-point rate cut.
- Geopolitical Tensions: U.S. sanctions on North Korea and Russia add uncertainty to the market.
- Gold Price Range: Expected between $2,645–$2,675 (₹76,500–₹78,000) on COMEX and MCX.
- Investment Strategy: Experts recommend a buy-on-dips approach.
Gold prices stayed stable on Tuesday, awaiting the outcome of the U.S. Federal Reserve’s policy meeting. Traders are looking closely at the meeting to understand how it will shape the future direction of gold prices.
Spot gold was priced at $2,652.30 per ounce (₹2,19,380 per kg), while U.S. gold futures were flat at $2,669.10 (₹2,20,377 per kg) as of 0028 GMT. The Federal Open Markets Committee (FOMC) is set to hold its last policy meeting of 2024, which could significantly affect gold’s future movement.
Market Expectations and Rate Cut Outlook
- 98.2% chance: A quarter-point rate cut by the U.S. Federal Reserve at the upcoming meeting.
- 14.7% chance: The likelihood of another rate cut in January 2025.
Several other central banks, including the Bank of Japan, Bank of England, Riksbank, and Norges Bank, will announce their policy decisions on December 19. Meanwhile, the European Central Bank may consider further rate cuts if inflation continues to meet its target of 2%. The Swiss National Bank is expected to reduce rates by 25 basis points in March 2025.
Gold, a non-yielding asset, generally does well when interest rates are low or during periods of economic or geopolitical uncertainty.
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Geopolitical Tensions and Market Moves
On Monday, the U.S. imposed new sanctions on North Korea and Russia, focusing on Pyongyang’s financial activities and its military support for Moscow.
The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a small increase in its holdings—up by 0.03% to 864.19 tonnes.
China, the top global gold consumer, reported that retail sales grew by 3.0% in November, a slowdown from the 4.8% growth in October.
Also read: Gold Price History in India 2024
Gold Price Movement and Market Predictions
- Spot silver prices remained stable at $30.49 per ounce (₹2,543 per 10 gm), while platinum gained 0.2% to $937.27 (₹75,921 per 10 gm). Palladium dropped 0.2% to $944.86 (₹76,574 per 10 gm).
- In India, gold futures for February 2024 expiry opened at ₹77,090 per 10 gm and reached an intraday high of ₹77,199. However, profit booking brought the price back to around ₹77,061 per 10 gm.
Expert Opinions
Gold is likely to trade within a range of $2,645–$2,675 (₹76,500–₹78,000 per 10 gm) on COMEX and MCX. Market volatility is expected to continue, but the outlook remains cautious as traders adjust to the uncertainties surrounding the Fed’s policy decisions.
Gold prices are expected to follow the movement of the U.S. dollar in the coming days. With a 25 basis points rate cut already priced in by the market, the Fed’s decision may not bring any major surprises for gold.
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