Gold prices firmed on Monday as investors turned their focus on the Federal Reserve’s meeting on Dec. 17-18, when it is widely expected to deliver its third interest rate cut this year.
FUNDAMENTALS
* Spot gold held ground at $2,649.53 per ounce, as of 0037 GMT. U.S. gold futures eased 0.3% to $2,668.00.
* Investors view it as a near given that the Fed will cut rates by a quarter of a percentage point this week, while the central bank’s language on rate cuts in 2025 is in focus.
* Markets fully expect a cut at the upcoming meeting, but have only priced in a roughly 18% chance of another reduction in January, according to CME’s FedWatch tool. * Non-yielding bullion tends to shine in a lower interest rate environment and during economic or geopolitical crisis.
* On the geopolitical front, Israeli strikes in Gaza killed at least 53 Palestinians, including a journalist and rescue workers, medics said, while the Israeli military said its air and ground forces in the north of the enclave killed dozens of militants and captured others.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.53% to 863.90 tonnes on Friday from 868.50 tonnes on Thursday.
* Gold discounts in India widened last week to their highest in over two months as a rebound in domestic prices during the wedding season curtailed demand, while China’s stimulus measures did little to revive consumer confidence in the key market.
* Spot silver was flat at $30.56 per ounce, platinum shed 0.2% to $922.95, while palladium gained 0.5% to $957.56.
DATA/EVENTS (GMT) 0030 Japan JibunBK Mfg PMI Flash SA, Comp Op Flash SA, Svc PMI Flash SA Dec 0200 China Urban Investment (YTD) YY Nov 0200 China Retail Sales YY Nov 0200 China Unemp Rate Urban Area Nov 0430 Japan Tertiary Ind Act NSA Oct 0815 France HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Dec 0830 Germany HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Dec 0900 EU HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Dec 0930 UK Flash Composite PMI, Flash Manufacturing PMI, Flash Services PMI Dec 1100 EU Reserve Assets Total Nov 1445 US S&P Global Mfg PMI Flash, Global Svcs PMI Flash, Global Comp Flash PMI Dec
UK House Price Rightmove MM, House Price Rightmove YY Dec.