Gold Prices Stabilize Ahead of Federal Reserve Rate Decision
Gold prices held steady on December 10, as the U.S. dollar strengthened due to robust economic data ahead of the Federal Reserve's interest rate decision, which is widely anticipated to include a rate cut.
Spot gold was priced at $4,210.29 per ounce, while February gold futures rose approximately 0.1% to $4,240.60 per ounce.
This stability was influenced by the dollar index reaching its highest level in about a week, supported by a strong U.S. jobs report that bolstered confidence in the labor market. Additionally, yields on 10-year U.S. Treasury bonds rose to their highest point in two and a half months.
According to data from the U.S. Labor Department, job openings rose to 7.67 million in October, exceeding expectations of 7.15 million.
In this context, White House economic advisor Kevin Hassett noted during a Wall Street Journal event that there is "ample room" for further rate cuts, although he cautioned that this could change if inflation rises. Hassett is considered a leading candidate for the chairmanship of the Federal Reserve.
Market estimates suggest an 88.6% probability of a 25 basis point rate cut at the conclusion of the Federal Open Market Committee meeting today, Wednesday. Assets that do not yield returns, such as gold, typically benefit from a low interest rate environment.
In other precious metals, silver prices increased by 0.5%, reaching a new record high of $61.02 per ounce after surpassing the $60 mark the previous Tuesday.
