Gold Prices Steady Ahead of Federal Reserve Decision
Gold prices held steady during trading on Wednesday, December 10, as the U.S. dollar strengthened due to solid economic data, ahead of the Federal Reserve's interest rate decision, which is widely expected to see a reduction.
Spot gold was priced at $4,210.29 per ounce, while February gold futures rose slightly by about 0.1% to $4,240.60 per ounce.
This stability was influenced by the dollar index reaching its highest level in approximately a week, supported by a strong U.S. employment report that bolstered confidence in the labor market. Additionally, U.S. 10-year Treasury yields stabilized at their highest point in two and a half months.
Data from the U.S. Department of Labor indicated an increase in job openings in October to 7.67 million, exceeding expectations of 7.15 million.
In this context, White House economic advisor Kevin Hassett stated during a Wall Street Journal event that there is a "broad margin" for further interest rate cuts, although he cautioned that the trajectory could change in the event of rising inflation. Hassett is a prominent candidate to lead the Federal Reserve.
Market estimates suggest an 88.6% probability of a 25 basis point cut at the conclusion of the Federal Open Market Committee meeting on Wednesday. Non-yielding assets like gold typically benefit from a low interest rate environment.
In other precious metals, silver prices in spot trading rose by 0.5%, reaching a new high of $61.02 per ounce after surpassing the $60 mark in the previous session.
