Spot Gold was holding within a tight trading range on Wednesday ahead of the outcome of the Federal Reserve’s two-day policy meeting.
The Fed is widely expected to cut its federal funds rate target range by 25 basis points to 4.25%-4.50% later today.
Fed Chair Jerome Powell said last month that strong US economic growth provided policy makers with the flexibility to take a careful approach when deciding future rate cuts.
The minutes from the Fed’s November 6th-7th meeting showed policy makers were optimistic that inflation was subsiding and the labor market remained resilient. That supported the case of more interest rate cuts, but at a measured pace.
Lower interest rates reduce the opportunity cost of holding Gold, which pays no interest.
The precious metal has surged 28.2% so far this year, being set for its sharpest annual gain since 2010, mostly driven by the US interest rate-cutting campaign, demand for safe haven assets as well as by central bank purchases.
According to State Street Global Advisors, Gold’s rally may be extended in 2025, as central bank purchases remain robust, demand from India and China continues to rise and as more investors seek the yellow metal to diversify their portfolios amid continued monetary policy easing and geopolitical concerns.
Spot Gold was last inching down 0.07% to trade at $2,644.88 per troy ounce.
Gold Futures for delivery in February were inching down 0.05% on the day to trade at $2,660.61 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
