Gold prices fall as markets focus on Fed policy decision

Spot gold fell 0.04% to $2,644 per ounce, while US gold futures fell 0.06% to $2,660.40.

The US Federal Reserve began its two-day meeting on Tuesday, with attention focused on updated economic forecasts and the Dot Plot chart that could change expectations for the path of interest rates through 2025 and 2026.

US retail sales data for November showed a stronger-than-expected increase, adding to positive inflation readings in recent months, suggesting a possible hold on the January rate cut.

Market expectations, according to the CME Group’s FedWatch tool, indicate a 97.1% chance of a quarter-point rate cut, while the probability of an additional cut in January is only about 16.3%.