Sunday, 20 July 2025

Gold firms amid hopes of lower interest rates in America

Gold prices stabilized above the $2,000 level on Wednesday, supported by expectations that the Federal Reserve (the US central bank) will reduce interest rates next year, while investors await inflation data in the United States scheduled to be published later in the week.

According to Reuters, gold prices in spot transactions witnessed no significant change, recording $2,039.89 per ounce by 0520 GMT. US gold futures rose 0.1% to $2,053.20.

The US Central Bank indicated last week that the monetary tightening phase had ended and hinted that next year may witness cuts in interest rates.

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Atlanta Federal Reserve Bank President Raphael Bostic said on Tuesday that there is currently no “urgency” to cut interest rates given the strength of the economy.

Matt Simpson, an analyst at City Index, said that the Federal Reserve “is holding back on interest rate cuts, and unless we see a weaker report on personal consumption expenditures inflation, there may be room for disappointment from those calling for a rate cut in March, and to reduce Possibilities of the upside trend for gold

Investors are currently awaiting the core personal consumption expenditures (PCE) report for November, which is the US Federal Reserve’s preferred measure of core inflation. It is scheduled to be released on Friday

As for other precious metals, silver rose in spot transactions 0.3% to $24.11 per ounce, platinum also increased 0.3% to $957.41, and palladium rose 0.1% to $1225.21.

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