Gold Prices Steady Ahead of Federal Reserve Decision
Gold prices held steady during trading on December 10, as the US dollar gained strength from robust economic data, ahead of the Federal Reserve's anticipated interest rate decision.
The spot price of gold was recorded at $4,210.29 per ounce, while February futures increased slightly by 0.1% to $4,240.60 per ounce.
This stability in gold prices was influenced by the dollar index, which reached its highest level in about a week, buoyed by a strong US jobs report that enhanced confidence in the labor market. Additionally, yields on 10-year US Treasury bonds climbed to their highest point in two and a half months.
Data from the US Department of Labor indicated that job openings in October rose to 7.67 million, surpassing the expected figure of 7.15 million.
In related developments, White House economic advisor Kevin Hassett stated at a Wall Street Journal event that there is "ample room" for additional interest rate cuts, although he cautioned that the trajectory may change if inflation rises. Hassett is considered a leading candidate for the position of Chairman of the Federal Reserve.
Market estimates suggest an 88.6% probability of a 25 basis point rate cut following the Federal Open Market Committee meeting today. Typically, assets with no yield, such as gold, benefit from a low interest rate environment.
In other precious metals, silver prices rose by 0.5% in spot trading, reaching a new high of $61.02 per ounce, after surpassing the $60 mark in the previous Tuesday session.
