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Gold prices edge up as dollar weakens; Fed's rate outlook keeps traders cautious


Published on 2025-01-02 08:41:13 - Investing
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  • Investing.com- Gold prices rose slightly in Asian trade on Thursday, extending their strong performance from 2024 as a weaker U.S. dollar provided support, while traders remained cautious given the U.S. Federal Reserve's projection of fewer interest rate cuts this year.

Gold prices experienced a slight increase on Monday as the U.S. dollar weakened, making gold less expensive for holders of other currencies. However, the gains were tempered by cautious trading due to the anticipation of the Federal Reserve's interest rate decisions. Investors are particularly focused on the upcoming U.S. inflation data, which could influence the Fed's monetary policy. The market's reaction reflects a balance between the immediate boost from a weaker dollar and the broader uncertainty regarding future rate hikes, which could diminish the appeal of non-yielding assets like gold. Additionally, comments from Fed officials suggesting a potential pause in rate hikes have introduced further complexity into market expectations.

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[ https://uk.investing.com/news/commodities-news/gold-prices-edge-up-as-dollar-weakens-feds-rate-outlook-keeps-traders-cautious-3856762 ]
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