Mumbai, 09 Dec (Commoditiescontrol): Gold prices ticked up on Monday, supported by investor anticipation of U.S. inflation data due later this week. The data is expected to provide insights into the Federal Reserve’s monetary policy trajectory.
Spot gold rose 0.1% to $2,631.60 per ounce, touching a session high of $2,647.99, while U.S. gold futures held steady at $2,658.10. The market focus is now on the inflation report scheduled for release on Wednesday, which could influence the Fed’s decision on interest rates.
According to the CME Group’s FedWatch Tool, there is an 85.1% probability of a 25-basis-point rate cut this month. Lower interest rates tend to benefit gold, a non-yielding asset, by reducing its opportunity cost.
The Federal Reserve appears poised to ease monetary policy, as recent U.S. labor market data suggested a cooling trend despite continued job growth. The Labor Department’s November report revealed that employers added 227,000 jobs, recovering from hurricane-related disruptions in October. However, the unemployment rate rose slightly to 4.2%, indicating some slack in the labor market.
Gold’s appeal as a safe-haven asset also grew amid geopolitical developments. On Sunday, Syrian rebels seized the capital, Damascus, without resistance, forcing President Bashar al-Assad to flee to Russia after 13 years of civil war and over six decades of family rule. Such political uncertainty often boosts demand for gold as a hedge.
Meanwhile, other precious metals exhibited mixed performance. Spot silver remained flat at $30.99 per ounce, platinum was steady at $930.20, and palladium gained 0.6%, reaching $962.10.
With key economic data and geopolitical events unfolding, gold prices are likely to remain sensitive to shifts in market sentiment.
(By Commoditiescontrol Bureau: 09820130172)
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